India’s cryptocurrency sector is intensifying its push for tax relief from the government, arguing that current regulations are overly burdensome. The industry cites high capital gains taxes and a 1% TDS on all digital asset transactions as obstacles to growth. This comes amidst increasing international interest in crypto fueled by figures like Donald Trump’s pro-crypto stance since his return to power. A report estimates a significant shift of trading activity to offshore platforms due to these regulations. Industry leaders are calling for reform, including a proposed 0.1% transaction tax as opposed to the current 30%. Compounding the challenges, new compliance regulations requiring designated persons to notify the Financial Intelligence Unit (FIU-IND) about digital asset transactions have added extra oversight. However, there’s hope for a more collaborative approach as the government engages with the industry more frequently, potentially leading to changes in policy discussions. This shift comes alongside positive developments, including increased engagement between crypto firms and policymakers. The global momentum in cryptocurrency adoption is also influencing India’s stance on digital assets, prompting potential reforms. As the Indian government shifts its perspective towards digital currencies, major exchanges like Coinbase and Binance are re-entering the market with a renewed focus on compliance and oversight. This indicates the possibility of a more favorable regulatory environment for cryptocurrencies in India.