India is reportedly set to drop a major discussion paper in June on crypto regulation. For a country that has hobbled between hardline tax moves and regulatory silence, this looks like a big shift. It is also a major signal that the government is warming up to the sector as industry prints fresh all-time highs (ATH).
US President Donald Trump’s bold pro-crypto stance and the ongoing tariff tussle have led the global digital asset market to print green indexes. Bitcoin, the biggest crypto, smashed its new ATH of over $111,900 on May 22 before retracing back to the $105K levels.
India to unveil crypto plan soon
According to reports, the paper, which is expected to be released by India, will pull heavily from the International Monetary Fund (IMF) and the Financial Stability Board (FSB) synthesis report. It might open the door for public input on how the country should handle the practices adopted by other jurisdictions.
India’s take on crypto has been in the grey zone, as the Financial Year 23 budget imposed a harsh 30% tax on crypto gains, it stopped short of giving the sector legal recognition. Regulators have since forced exchanges to register with India’s Financial Intelligence Unit. Meanwhile, the Reserve Bank of India has repeatedly flagged risks like money laundering and terror financing and even pushed its own CBDC as the safer option.
The report mentioned that a senior government official said India will make its crypto decisions based on national interest, avoiding any “knee-jerk” reactions given the sector’s massive implications.
Earlier, the Supreme Court of India slammed the central government for its long silence on crypto regulation. It warned that this legal vacuum is turning into a breeding ground for misuse. The court even grilled the government over when the biggest global economies are pushing forward with regulatory frameworks and India still hasn’t introduced any clear rules.
A new report from think tank Esya Centre estimates that nearly 90% of Indian crypto trading has shifted offshore as a direct result of these regulations. It has eroded India’s foothold in the fast-expanding global crypto economy. Industry leaders warn that the current tax structure stifles innovation, pushes users toward unregulated markets.
India’s top court demands crypto rules
The US is doing some major reforms for the crypto community. Once a vocal crypto skeptic under Biden, Trump’s administration has pardoned several digital assets industry leaders and launched a strategic bitcoin reserve, and is pushing Congress to pass pro-crypto laws.
Recently, Trump’s Senate passed stablecoin legislation; on the other hand, the EU’s MiCA regulation is already rolling out in real time. Against this backdrop, India’s Supreme Court said that it’s no longer acceptable to keep dodging the issue. A bench led by Justices Surya Kant and N Kotiswar Singh highlighted that banning crypto isn’t the answer, but regulation is urgently needed.
The cumulative crypto market cap registered a drop of more than 3% on Friday morning to stand at $3.31 trillion. Its 24-hour trading volume stood at $142.3 billion. After a brief rally, the Bitcoin price has stayed down by 5% over the past 7 days. One of the biggest gainers of the year, Ripple’s XRP price dropped by a huge 10% in the same period.
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