As World Embraces Crypto, India Watches

Delayed crypto regulations could be costing India more than just innovation; they could be costing GDP growth

- BY PAROMITA GUPTA

Since 2015, cryptocurrencies (crypto) and blockchain technology have had a notable yet modest effect on the global economy, contributing up to 0.5 per cent as of 2025. This minuscule figure is, in reality, an m-cap of over USD 4 trillion, valuing more than the entire GDP of Canada, Brazil, and even the UK. India is estimated to have over 100 million cryptocurrency owners as of 2024, making it one of the largest crypto markets globally, accounting for nearly one in five crypto users worldwide. Yet, the inaction from the government and policymakers persists in providing a comprehensive legal recognition or a clear regulatory framework for cryptocurrencies.

India is still not seen as a favourable crypto ecosystem in 2025 due to a combination of regulatory uncertainty, restrictive rules, tax burdens, and ongoing policy hesitation. At present, the ecosystem comprises a flat 30 per cent tax on gains and a one per cent tax deducted at source (TDS) on every trade.

GLOBAL TRENDS AND RAPID MOVERS

Cryptocurrency is now used in over 150 countries, with substantial user participation and notable market reach in at least 75 to 100 countries. The United States leads as the most active nation in crypto trading. The country has nearly 200,000 Bitcoins as part of its treasury U.S. President Donald Trump recently signed the GENIUS Act, creating a regulatory framework for dollar-pegged cryptocurrencies known as stablecoins. Since Trump's re-election, Bitcoin has surged over 60 per cent, reaching a new all-time high of over USD 124,000.

China follows with 1.9 lakh Bitcoin despite the 2019 ban on all forms of cryptocurrency trading activities and restricting access to exchanges, and 2021's People's Bank of China (PBOC) ban of all cryptocurrency transactions and closing the last remaining loopholes. This move comes as the country aims to promote their digital yuan initiative.