- The government introduced mandatory reporting for crypto transactions, adding some regulatory clarity.
- No changes were made to the 30% tax on crypto gains or the 1% TDS on transactions.
- Web3 leaders urge clearer policies to prevent talent and capital flight to crypto-friendly nations.
The Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman has left India’s cryptocurrency industry feeling overlooked, with no relief from the 30% tax on gains and the 1% TDS on transactions.
Many experts expressed concerns over India’s restrictive tax policies, which continue to push blockchain startups and crypto investors toward more favorable jurisdictions like Singapore and Dubai.
Web3 and Crypto Sectors Seek Urgent Policy Reforms After Union Budget 2025
Despite India’s growing influence in the Web3 and crypto space, the Union Budget 2025-26 failed to address key industry concerns. While the government introduced mandatory reporting requirements for certain crypto transactions, no substantial regulatory framework was announced. Experts believe this ambiguity hinders long-term growth and investor confidence.
The high taxation regime—30% on crypto profits and 1% TDS on transactions—remains a major roadblock. Industry leaders argue that these policies discourage participation in the Indian market and push businesses to shift operations to crypto-friendly nations. Calls for a more balanced tax structure were ignored, leaving investors frustrated.
Web3 companies have cautiously welcomed the government’s focus on digital transformation and AI-driven education reforms. These measures align with the broader goal of fostering innovation, but without clear guidelines on VDAs, India risks losing its tech talent to international competitors.
Industry leaders, including those from the Bharat Web3 Association and major exchanges, continue to urge policymakers to revisit crypto taxation and compliance requirements. The lack of changes in the current tax framework signals an uphill battle for Indian startups striving to compete in the global digital economy.
India’s Web3 and crypto community remains hopeful for future reforms, but the Union Budget 2025-26 has largely failed to address their core concerns. Without a clear regulatory framework and balanced taxation policies, India risks losing its leadership potential in the fast-growing digital asset economy.
“Regulation should not stifle innovation but enable it.” – Brian Armstrong, CEO of Coinbase
