The bygone year 2024 was a roller-coaster ride for the Indian crypto community. On one hand, the crypto adoption surged in the country while on the other, millions of Indian investors lost their money after WazirX cryptocurrency exchange suffered a major hack of Rs 2000 crore.
As of now, cryptocurrencies remain unregularized in India but there is a steep 30% tax on capital gains plus an additional 1% tax deducted at source (TDS). Crypto community in India has been awaiting a positive statement from union finance minister Nirmala Sitharaman for the past few years but they have met with only disappointment as crypto remained largely ignored in the government’s priority list.
The Indian Crypto community is optimistic again as Sitharaman is all set to present the Union Budget on 1st February 2025. This will be the second budget of the Modi Government’s third term and Nirmala Sitharaman’s eight consecutive budget presentation that includes one interim budget.
The Union Budget 2025 is expected to center around the themes of “Amrit Kaal “ and “Viksit Bharat“. However, it is to see whether this budget will prioritize Crypto Industry and lowering of taxes along with Crypto regulations and encouragement for crypto business or will this be another year of disappointments.
While the community has remained largely disappointed with the Indian government’s stance towards crypto, they are still hopeful given the recent victory Donald Trump in U.S. presidential elections and the way he has promoted crypto adoption in his country. So days ahead of the union budget 2025-26, The Crypto Times reached out to several industry leaders regarding their expectations from the budget related to Web3.
“Need robust framework for crypto” say industry leaders
Speaking to The Crypto Times, Himanshu Maradiya, Chairman & Founder of CIFDAQ, has shared some of his expectations from the upcoming Union Budget of 2025.
“Proposals include reducing the TDS rate on crypto transactions from 1% to 0.01% to enhance liquidity and establishing a robust licensing framework for crypto exchanges. Additionally, promoting blockchain innovation through incentives could position India as a leader in Web3 technologies,” said Maradiya.
Similarly, Avinash Shekhar, co-founder and CEO of Pi42 demanded lowering of taxes on crypto in the coming budget.
I believe that the Union Budget 2025 should target the reduction of tax on virtual digital assets below 30% and cut the TDS on all transactions from 1% to 0.01%,” says Shekhar.
Similarly, Shahzad Nathani, Head of Operations & Partnerships at Shardeum said he expects the Indian government to introduce tax concessions for Web3 startups.
“We hope the Government will introduce tax breaks for Web3 startups, fostering innovation and growth in progressive technologies,” said Nathani.
“Fintech and AI also need boost from budget”, say industry leaders
Several industry leaders from the fintech sector also spoke to The Crypto Times, sharing their expectations from the upcoming union budget of India.
“We expect the government to address the evolving regulatory landscape for fintech, especially the DPDP Act, fostering innovation while ensuring consumer protection and financial stability,” said Rohith Reji, Co- founder and CEO at Neokred.
“This investment should focus on providing cutting-edge AI infrastructure, including high-speed internet access, advanced digital tools, and dedicated AI labs in schools and colleges,” said Mridu Andotra, Founder & CEO, GeniusMentor.
Similarly, many industry leaders also asked for greater reforms in the overall web3 sector in India with emphasis on blockchain adoption beyond crypto.
“They must provide a clear regulatory framework for blockchain and cryptocurrencies, encourage blockchain adoption in land records, supply chain management, and public services and set up Web3 incubators for startups,” said Gaurav Sahay, Practice Head – Technology & General Corporate, Fox Mandal & Associates LLP.
Conclusion
The fast-growing Web3 developments around the globe, is a hint for India for greater crypto adoption in 2025 according to industry projections. Regulatory approval remains an object of keen interest for both investors and crypto enthusiasts and startup entities who anticipate extended regulatory clarity.
Also Read: Two Months to WazirX Hack: Why Crypto is a Hush Hush Affair in India
