'We Are Disappointed': Budget 2025 Offers No Relief for Crypto Sector, Industry Voices Concerns

The Union Budget’s failure to address crypto taxation and regulation is seen as a missed opportunity to foster innovation and retain talent in the country’s burgeoning digital asset sector.

India has emerged as a leader in grassroots crypto adoption, but the heavy tax burden has pushed many participants toward offshore exchanges.

Source : Ewan Kennedy/Unsplash

Budget 2025: The crypto industry expressed dismay over the Union Budget 2025, which maintained the current tax structure for Virtual Digital Assets (VDAs) without offering the much-anticipated relief. Key players highlighted concerns over the lack of measures to foster growth or address the regulatory and tax challenges faced by the sector.

'We Are Disappointed'

Sumit Gupta, Co-founder of CoinDCX, said, "Despite providing the government with ample justification regarding the ambiguity in the language of the current TDS Section 194S, the concerns around Indian wealth being shifted offshore and the significant loss to the tax exchequer have been overlooked. International exchanges should be obligated to the same 1 per cent TDS as compliant Indian exchanges. As a compliant company, we are disappointed."

"Moreover, there are some provisions aimed at achieving individual tax compliance for VDA investors, which will likely lead to more compliance burdens on domestic exchanges that are already adhering to the regulations," Gupta added.

'No Direction Being Provided'

Avinash Shekhar, CEO of Pi42, said "Emphasis on integrating technology across multiple levels of curriculum and education system clearly signals that the government wants the future workforce to be better equipped with all the tech knowhows."

Shekhar added, "However, with no direction being provided towards the future of Virtual Digital Assets (VDAs) and their regulations has left the huge crypto ecosystem in the country disappointed."

"India continues to host one of the largest crypto investors and enthusiasts across the globe. The 30 per cent tax on closure profits and 1 per cent TDS on transactions are leading to more and more such investors miss out of the opportunities amidst a rapidly expanding crypto markets across the globe," he added.

'We Were Hopeful'

Ashish Singhal, Co-founder of CoinSwitch and Lemonn, said, "We were hopeful that the government would take steps to rationalise the tax structure on VDAs, but unfortunately, that has not materialised."

"However, the inclusion of VDA governance in the Finance Bill is a positive step, bringing in more regulatory clarity, reflecting the growing adoption of digital assets and acknowledging the impact they are making on the economy."

'High Tax Burden Driving Away Participants'

Edul Patel, CEO of Mudrex, said, "While regulatory clarity remains, the lack of revisions — particularly on the 1 per cent TDS and the inability to offset losses — continues to pose challenges for investors, traders, and industry in the space." 

"India leads in grassroots crypto adoption, yet the high tax burden has driven many participants to offshore exchanges, reducing transparency and limiting domestic market growth. A more balanced approach — such as lowering TDS to 0.01 per cent and allowing loss offsets — could have encouraged sustainable participation and innovation," Patel added.

The Budget’s failure to address crypto taxation and regulation is seen as a missed opportunity to foster innovation and retain talent in the country’s burgeoning digital asset sector.

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