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06/17 15:06

Crypto India Outlook: INR Stablecoin Makes the Rup

#World Cup Predictions: 100,000 USDT Daily #BTC Prophet: 20-Day 380 Million HTX Challenge #1$ Margin Trade Crypto India Outlook: INR Stablecoin Makes the Rupee Go Global – GetBit Founder Makes a Bold Prediction India is likely to move toward a more balanced cryptocurrency regulatory framework in the coming years, according to GetBit Founder Abhay Agarwal, who believes the current tax structure was introduced during a period when policymakers were still trying to understand a rapidly evolving industry. Speaking in an interview with Coinpedia, Abhay said the existing 30% tax on crypto gains remains high compared to most other asset classes, but emphasized that the larger challenge is the 1% Tax Deducted at Source (TDS) imposed on every crypto transaction. “The 30% tax on gains is high compared to most other asset classes, but the bigger issue is the 1% TDS. It effectively acts as a liquidity tax and disproportionately impacts active market participants.” According to Abhay, the current framework served its purpose by helping regulators monitor the sector. However, as regulatory visibility improves and the industry matures, he expects policymakers to revisit the tax structure. He believes a reduction in TDS is likely to be the first major change, potentially within the next two to four years. Liquidity Migration Remains the Biggest Consequence Discussing the impact of the 1% TDS, Abhay identified the migration of liquidity away from India as the most significant consequence. He explained that financial markets function most efficiently when buyers and sellers can transact without excessive friction. The 1% TDS significantly increases trading costs, particularly for market makers and active participants, prompting a large share of trading activity to move offshore shortly after the rule was introduced. l

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