The winds of change are sweeping through India’s cryptocurrency landscape as regulators take significant steps toward establishing a thorough framework for digital assets.
With the introduction of the COINS Act 2025, India is finally providing clear legal definitions for crypto assets and digital tokens, a move that has been keenly anticipated by the country’s estimated 107 million active virtual digital asset users.
At the heart of this regulatory evolution is the proposed Crypto Assets Regulatory Authority (CARA), which would provide dedicated oversight to the rapidly expanding sector.
CARA stands as the regulatory cornerstone India needs to transform its crypto wilderness into an orderly marketplace for digital innovation.
It’s like India is finally building a proper playground with actual rules, rather than letting crypto enthusiasts play in an unmarked field where nobody knows what’s out of bounds.
The framework places significant emphasis on cross-border payment systems, with stablecoins emerging as a particularly promising solution for remittances.
Indian regulators aren’t reinventing the wheel—they’re carefully studying global standards like the EU’s MiCA and Singapore’s regulatory sandbox, then tailoring these approaches to fit India’s unique market conditions.
This approach demonstrates India’s commitment to global regulatory harmony while preserving the nation’s sovereignty in financial matters.
Taxation remains a complex hurdle for crypto enthusiasts.
The current 30% flat tax on gains plus 1% TDS on transfers has been criticized for its severity and lack of loss-offsetting provisions. The COINS Act aims to provide much-needed taxation clarity with comprehensive guidelines for deductions on trading fees and TDS rules.
It’s like being penalized for playing a game where you can only count your wins, never your losses.
The framework’s international dimension is particularly significant, with India advocating for swift implementation of the Crypto-Asset Reporting Framework at G20 summits.
This push for global regulatory harmony reflects India’s growing influence in international financial discussions.
For ordinary Indians, the proposed consumer protections against fraud and scams represent a significant step forward.
The dramatic 97% drop in domestic exchange trading volumes following the 2022 tax implementation underscores the urgency for a more balanced regulatory approach.
The VDA market is projected to reach USD 6.4 billion by the end of 2025, a figure that underscores the importance of establishing legal certainty and protecting investments in this rapidly evolving sector.
