India’s Crypto Sector Seeks Tax Reductions Amid Regulatory Shift

The 2025 Income Tax Bill requires obtaining No Objection Certificates for every cryptocurrency transfer, confronting traders with new compliance challenges. This rigid approach marks a notable shift in regulation compared to previous frameworks.

Industry stakeholders, concerned about potential operational hindrances, urge the government to consider tax relief measures.

“These new tax compliance requirements represent a significant burden for crypto traders, which could lead to calls within the industry for tax reform or cuts.”

Cryptocurrency stakeholders describe the regulations as imposing, with potential financial and logistical challenges. The stringent requirements may also lead to reduced trading frequencies as investors navigate through compliance barriers.

Financial analysts indicate the regulatory shifts might provoke market adjustments. Crypto investments could face scrutiny, with transaction costs potentially increasing, challenging market participants to reassess risk profiles.

Previously, crypto in India faced fluctuating regulatory landscapes, with changes influencing market liquidity. The introduction of tax requirements echoes past concerns over state intervention in digital currencies.

Experts from Kanalcoin analyze that stringent enforcement may lead to reduced market buoyancy similar to past restrictive measures. This regulatory pressure symbolizes renewed government focus on digital asset compliance.