India’s COINS Act 2025: Is This the Crypto Regulatory Revolution We’ve Been Waiting For?

Brace for impact—India's COINS Act 2025 just dropped, and the crypto world is either cheering or scrambling for cover. Forget patchwork policies—this legislation aims to rewrite the rulebook entirely.

The New Playbook

No more regulatory whack-a-mole. The Act consolidates crypto oversight under a single framework, replacing the current mess of advisories and banking restrictions. Finally, clarity—or a new set of shackles, depending who you ask.

Taxman Cometh (Again)

Hold onto your private keys: the 1% TDS rule stays, but with sharper teeth. New capital gains brackets target high-frequency traders, while long-term HODLers get a slight reprieve—because nothing says 'progress' like complicating your tax strategy.

The Institutional Green Light

Pension funds and insurers now get explicit permission to allocate to crypto—with limits, naturally. Because what’s financial innovation without a few paternalistic guardrails?

The Bottom Line

India’s playing catch-up with a vengeance. Whether this triggers a bull run or just more bureaucratic sprawl depends on one thing: how fast regulators can move before the next market cycle leaves them in the dust.

Why Does India Need the COINS Act?

The COINS Act came to light all because of the persistent regulatory uncertainty that has driven decentralized finance (DeFi) protocols, crypto gaming studios, and infrastructure projects offshore. India, as Arvind Alexander, the legal representative of Hashed Emergent, pointed out, does not have any clear laws on self-custody, privacy, and access to permissionless protocols and instead has an extreme tax regime levying a 30% flat tax on all profits made by VIRTUAL digital assets (VDAs) and 1 % TDS on all transactions. 

The COINS Act offers a balanced solution to the dichotomy of innovation and regulation by presenting a rights-first framework, which prioritizes crypto-native rights as constitutional extensions, providing a road-map-like approach to the governance of the new foundational infrastructure. The initiative will be aligned with the global standards and will be inspired by the EU Markets in Crypto-Assets Regulation (MiCA), as well as the Singapore regulatory sandbox.

What Are the Key Provisions of the COINS Act?

The COINS Act introduces a comprehensive framework to address India’s crypto challenges. Its key provisions include:

• Self-Custody as a Right: The COINS Act states that self-custody is a core right that gives users control over their digital assets without the need to depend on third parties.
• Eradication of Compulsory KYC: It eradicates compulsory Know Your Customer (KYC) for P2P transactions, elevating the safety of financial privacy.
• Developer Protections: The COINS Act would protect developers by freeing them of liability in the event of misuse of their protocols by preventing the fear of lawsuits.
• Tax Reforms: It suggests the abolition of the 30 % tax and 1 % TDS to a more tax-friendly system of innovation.
• Crypto Assets Regulatory Authority (CARA): The COINS Act suggests the establishment of CARA, a specialized regulator of crypto activities that will take over the scattered control of crypto activities, which is based on the functions of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
• Bitcoin Reserve: In line with the idea of the US holding a $1.1 billion Bitcoin reserve, this act proposes a national Bitcoin reserve seeded with seized crypto assets and modest market purchases, overseen by parliament.

To have some traction, Hashed Emergent will also co-organize an event with the Bharat Web3 Association to make a contrast between the COINS Act and the discussion paper that the Department of Economic Affairs is coming out with. To promote the ideas of the model law, Black DOT will hold workshops with the major regulators.

The COINS Act 2025 represents a pivotal step toward transforming India’s crypto landscape. By giving more weight to the rights of users, lowering regulatory hurdles, and suggesting new solutions like a Bitcoin reserve, it is a blueprint that policymakers across India should pay close attention to.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. 

Is Crypto Legal In India?

Yes, crypto is completely legal in India and is taxed with 30% capital gains tax and 1% TDS on every transaction.

Is SunCrypto Safe?

Yes, SunCrypto is SAFE as it is FIU-IND registered with 2.5 million users.

What Is Bitcoin SIP Calculator?

A bitcoin SIP calculator is an online tool that helps estimate the potential returns on investments in Bitcoin made through regular, periodic installments.