India should setup a crypto regulatory body by 2025-end: Crypto Outlook report
India should setup a Digital Asset Regulatory Authority (DARA) by 2025 end or early 2026 considering its growing role in the global crypto ecosystem, said Blue Aster Capital and Crebaco Global research firm in the Crypto Outlook 2024-2025 report.
Stating that India accounts for 11.8 per cent of crypto developers and 5.4 per cent of Web3 creators worldwide, the report called for a regulatory body focusing specifically on reforms for taxation, Anti-Money Laundering (AML) compliance, investor protection and integration with financial services. Particularly for taxation, the report suggested differentiating long-term and short-term tax treatment for crypto assets and reducing TDS rates from the current 1 per cent to 0.01 per cent.
“Once a proper regulator comes into action Indian crypto ecosystem has nowhere else to go but North from where it is today. In the absence of the regulator, India is facing a grey area for crypto, with near to zero transparency from exchanges to disastrous hacks with leading exchanges in the country which are not understood by many. Unfortunately, a lot of retail involvement is present in the country and the courts do not understand the system. This will be resolved only when the space is regulated,” said the report.
It also anticipated appointment of a standing committee in the Budget session to present a Bill in this regard by the end of 2025 in light of growing recognition of cryptocurrency. It noted that in 2019, India proposed a draft Bill to completely ban cryptocurrencies. However, the proposal was never introduced in Parliament, and India’s on crypto has changed since then to align with global trends. Moving forward, the report estimated India’s focus to shift from speculative trading to practical utility in the crypto space.
“The future of crypto in India is about building a decentralized, inclusive, and innovative digital ecosystem. This transition reflects a broader market maturity and an increasing emphasis on real-world applications for digital assets,” said the report.
Vishal Sacheendran, Head of Regional Markets at Binance, hoped that the country will take the lead in developing comprehensive crypto regulations, thus positioning it as a global hub for crypto innovation. In 2024, total crypto market capitalization grew from $1.65 trillion to $3.4 trillion, said the report.