India Calls for Clear Rules on Crypto to Keep Money Home
India’s Digital Currency Dilemma: High Taxes, Low Clarity
Taxation vs. Legality
India levies a flat 30 % tax on crypto gains, yet still treats digital money as illegal.
A 1 % fee is imposed on every sale or transfer.The Exodus Effect
The lack of clear rules pushes traders abroad. A study by a crypto‑tax firm shows that 73 % of India’s trading volume—about $5.6 billion—occurs on foreign platforms.
Lawmaker’s Proposal
A member of the upper house suggests creating a “sandbox” with proper safeguards to keep money domestic and boost tax revenue.
He urged: “Let us not fear new ideas, let’s put rules in place.”Regulatory Delay
The government has postponed a bill that would clarify crypto laws.
India’s top court labeled the delay “unfortunate.”Reserve Bank Stance
The RBI states that stablecoins tied to foreign currencies do not qualify as sovereign currency, warning they could increase dependence on the U.S. dollar and weaken India’s own money.
