India Takes Strong Action: New Trends in 30% Crypto Taxation and DeFi Risk Management

【BitPush】The Indian financial regulatory authorities have recently reiterated their concerns about the cryptocurrency trading ecosystem. This reaffirmation is not unfounded—tax authorities have explicitly pointed out the compliance risks associated with offshore trading platforms, self-custody wallets, and the DeFi ecosystem. Where is the core issue? The inherent characteristics of crypto assets determine that: they can facilitate anonymous, cross-border, near-zero latency value transfers, and users can even completely bypass traditional financial intermediaries. This makes tax tracking akin to finding a needle in a haystack.

From a tax policy perspective, the Indian government’s stance is somewhat contradictory. On one hand, it imposes a flat 30% tax on all crypto asset gains, along with a 1% withholding tax on any transfer transactions—undoubtedly one of the strictest tax regimes in the industry. On the other hand, the Indian authorities recognize the legality of cryptocurrencies and even allow a leading trading platform to re-enter the market in 2025.

This complex policy posture reflects the true predicament faced by regulators: they want to maintain tax order and financial security, but do not want to completely cut off the lifeline of this emerging market. But ultimately, the scale of control seems to be leaning more heavily in that direction.