India’s crypto industry is urging the government to lower taxes on digital assets, arguing that high rates are driving trading offshore and harming the economy. Leaders are pushing for a reduction in the 1% transaction tax imposed in 2022, hoping it will revitalize domestic markets. The move comes as regulatory engagements with Indian authorities have increased, though no significant changes are expected immediately. CoinSwitch CEO Ashish Singhal highlights the importance of tax reform to address India’s rapidly growing crypto market, emphasizing the need for a more favorable environment for businesses and investors. 90% of trading volume is currently shifting to offshore platforms due to high taxes, with some even considering capital gains as excessive. The potential loss of tax revenue and reduced domestic activity highlights the urgency to find solutions. The industry seeks clarity on regulations from authorities like the Reserve Bank of India (RBI), while businesses weigh their options and await future reforms. International investors and developers are calling for consistent guidelines and regulations to foster innovation in the market, predicting a potential $15 billion market by 2035 if tax policies shift favorably. India’s crypto industry’s plea is crucial as it may significantly impact regional and global dynamics.