India's Crypto Policy in Focus: Parliament Set to Shape the Future of Digital Assets

India's cryptocurrency industry could be approaching a defining moment as the ongoing Monsoon Session of Parliament is expected to witness discussions around the country's regulatory approach toward digital assets.

For years, India has imposed taxes on cryptocurrencies without introducing a dedicated legal framework. While crypto investors currently pay 30% tax on gains and 1% TDS on every transfer, the country still lacks a comprehensive law governing digital assets.

With millions of users already participating in the crypto ecosystem, industry stakeholders are hoping for greater regulatory clarity that could encourage innovation while protecting investors.

📌 Key Highlights

📌 India Has a Massive Crypto User Base

• India is estimated to have around 3.9 crore (39 million) KYC-verified crypto users.
• The country holds digital assets worth more than ₹20,400 crore, highlighting the rapid growth of the sector.

📌 Crypto Is Taxed, But Not Fully Regulated

Despite the absence of a dedicated crypto law, investors currently face:

• 30% tax on crypto gains.
• 1% Tax Deducted at Source (TDS) on every crypto transfer.

This has created a situation where digital assets are taxed but lack a comprehensive regulatory framework.

📌 54 FIU-Registered Firms Operating

At present, 54 Virtual Digital Asset (VDA) service providers are registered with the Financial Intelligence Unit (FIU), reflecting growing compliance within the industry.