India’s Crypto Sector Lobbies for Tax Reforms Amid Shifting Political Winds

India’s cryptocurrency industry is intensifying efforts to persuade the government to revise its stringent tax policies, capitalizing on growing political receptiveness to digital assets. The push comes as global sentiment shifts, particularly following Donald Trump’s pro-crypto stance during his return to the White House campaign.

Industry leaders report significantly increased engagement with policymakers this year. The focus remains on reversing 2022’s controversial tax measures—a 30% capital gains levy and 1% transaction tax—which the Esya Centre estimates drove over 90% of domestic crypto trading offshore. These policies were originally implemented to curb illicit activity but have stifled local exchange growth.

The lobbying effort coincides with New Delhi’s warming attitude toward the once-pariah sector. Market participants note the changing tone mirrors broader geopolitical trends, with India’s crypto industry seeking alignment with evolving global standards.