Crypto Industry Seeks Relief in Upcoming 2026 Budget of India

TheNewsCrypto2026-01-19 tarihinde yayınlandı2026-01-19 tarihinde güncellendi

Özet

India's crypto industry is seeking tax relief in the upcoming 2026 national budget, scheduled for February 1. Key requests include a reduction in the 1% TDS (Tax Deducted at Source) on transactions to 0.1% to improve liquidity and prevent investor migration to offshore platforms. Industry leaders also advocate for a revision of the 30% tax on crypto gains to boost investor confidence. Additionally, tokenization is highlighted as a significant trend, promising greater transparency, lower costs, and 24/7 trading via blockchain. These appeals come amid global crypto market volatility, driven by geopolitical tensions and economic policies, prompting some investors to shift to safer assets like gold.

India is gearing up for its next budget, and the national crypto market is hoping to get some relief in it. The 2026 budget is scheduled to be presented on February 01, 2026, by the current Finance Minister, Nirmala Sitharaman. The top-most points are TDS cut and reset in taxation. These calls come at a time when the global crypto market is going through heavy volatility.

Relief Sought by Indian Crypto Industry

Two points dominated the most, namely a reduction in TDS and relaxation in taxation. The Indian authorities currently charge a 1% TDS on every transaction. The industry is hoping that the budget brings it down to 0.1%, citing that a high TDS has affected liquidity and the efficiency of investors to trade.

Edul Patel, CEO of Mudrex, according to a report by News18, has said that a higher TDS often drives investors to an offshore platform. Thereby reducing transparency within the domestic ecosystem. Patel added that a lower TDS could lower the friction and lead to a sustainable Indian crypto market.

For tax relaxation, Vikas Gupta, Country Manager at ByBit for India, according to the same report, has underlined that a 30% rate on crypto gains is possibly pushing investors to a low-cost overseas platform. He added that a revision to the crypto gain tax rate could improve the confidence of investors.

Tokenization as a Concept

Tokenization as a concept or a theme was talked about by Sumit Gupta, Co-Founder of CoinDCX, in an interaction with CNBC TV18. He first underlined that industry leaders in the US were expecting momentum in the next year due to regulatory clarity, new financial products, and institutional participation. Then, he called tokenization a big theme, adding that the usage of stablecoins and blockchain-based assets was growing.

Sumit Gupta said that tokenization was bringing transparency, lowering the cost, and making access convenient. He also addressed that financial markets moving on-chain would eventually allow investors to trade 24 hours a day via blockchain technology. Sumit Gupta had earlier highlighted three points to reset the Indian crypto market.

Volatility in Crypto Market

The global crypto market is volatile at the moment, with big tokens like BTC and ETH losing their respective values significantly. The influence is credited to Trump’s announcement about imposing tariffs on at least eight European countries. This rate could go as high as 25%, which would only disrupt international trade further.

The US Federal Reserve is less likely to cut rates, and the US Supreme Court could soon deliver a verdict on Trump’s current tariff rates. These are adding to the ongoing volatility in the global crypto market. Investors are even seen diverting their investments to safer options like Gold and Silver.

Highlighted Crypto News Today

Canaan Risks Nasdaq Delisting as Shares Slip Below $1 Again

İlgili Sorular

QWhat are the two main reliefs sought by the Indian crypto industry in the upcoming 2026 budget?

AThe two main reliefs sought are a reduction in the TDS (Tax Deducted at Source) from 1% to 0.1% on every transaction, and a relaxation in the 30% tax rate on crypto gains.

QAccording to Edul Patel, CEO of Mudrex, what is a consequence of the high TDS rate in India?

AEdul Patel stated that a higher TDS often drives investors to offshore platforms, thereby reducing transparency within the domestic crypto ecosystem.

QWhat concept did Sumit Gupta, Co-Founder of CoinDCX, highlight as a 'big theme' for the future?

ASumit Gupta highlighted 'tokenization' as a big theme, noting that it brings transparency, lowers costs, and makes access convenient for financial markets moving on-chain.

QWhat external global event is credited with influencing the current volatility in the crypto market, as mentioned in the article?

AThe volatility is credited to former President Trump's announcement about imposing tariffs, which could go as high as 25%, on at least eight European countries, disrupting international trade.

QWhat is the current TDS rate on crypto transactions in India that the industry wants reduced?

AThe current TDS rate on every crypto transaction in India is 1%, and the industry is hoping the budget will reduce it to 0.1%.

İlgili Okumalar

Venus Protocol Integrates Tokenized Stocks As Lending Collateral On BNB Chain

Venus Protocol now allows tokenized stocks from companies like Apple, Tesla, and Microsoft to be used as borrowing collateral on BNB Chain. This integration brings a key real-world asset (RWA) use case into DeFi lending. Users can deposit these tokenized equities, which are described as 1:1 backed by real shares held by regulated custodians, into isolated pools to borrow stablecoins or BNB without selling their underlying positions. This move expands DeFi lending beyond crypto-native assets, resembling traditional margin finance. It highlights BNB Chain's competition for RWA activity and aims to attract more stable liquidity. However, tokenized stocks introduce different risks, including dependency on off-chain custodians and challenges with collateral valuation due to differing market hours between traditional and on-chain trading. While not an immediate price catalyst, this development is significant within broader crypto trends like compliance pressure and RWA tokenization. Success will depend on growing liquidity, reliable custody, robust price oracles, and clear rules for redemptions and liquidations.

bitcoinist16 dk önce

Venus Protocol Integrates Tokenized Stocks As Lending Collateral On BNB Chain

bitcoinist16 dk önce

The Impossible Trilemma Is Basically a Pseudo-Problem

The article argues that the core limitation of blockchain technology is not the scalability trilemma, but its fundamental lack of privacy, which acts as a barrier to institutional capital. It defines blockchain as a slow, expensive, shared computer whose primary value is "permissionlessness" (no administrator) and verifiable trust. While this is ideal for native financial assets like stable币, which now process trillions, two critical flaws remain for mainstream adoption: regulatory legitimacy and a default transparency that leaks all financial activity. The author contends that transparency is not a feature but a tax, quantified through MEV extraction, making the public ledger unusable for serious institutions. However, modern cryptography, specifically zero-knowledge proofs, now offers a solution: "provable privacy." This allows users to prove compliance (e.g., solvency, KYC) without revealing underlying data. This fusion of privacy and auditability resolves the transparency-compliant privacy-compliance dichotomy, enabling a purely upgraded system where transactions are verified but not broadcasted. Closing these flaws is presented as the essential bridge to onboard the next wave of trillions in capital.

marsbit10 saat önce

The Impossible Trilemma Is Basically a Pseudo-Problem

marsbit10 saat önce

The "Impossible Triad" Is Fundamentally a Pseudo-Problem

The article argues that blockchain's fundamental limitation is not the scalability trilemma (decentralization, scalability, security), which has been largely solved, but the lack of **privacy** and, until recently, clear **legitimacy**. Blockchain is described as a slow, expensive, globally shared computer whose core value is censorship resistance and verifiability. While ideal for native digital assets like money (e.g., stablecoins), its default transparency acts as a **tax**, exposing all transactions and enabling MEV extraction, which deters serious institutional capital. Simultaneously, its permissionless nature created regulatory ambiguity. The piece contends that **privacy** is the missing critical feature. It rejects the false choice between total transparency and complete anonymity. Modern cryptography (like zero-knowledge proofs) enables **compliant privacy**: users can prove facts (solvency, KYC status, compliance) without revealing the underlying sensitive data (specific holdings, identities). This preserves auditability for regulators and eliminates the leak of financial information. With recent regulatory progress (e.g., the GENIUS Act) addressing legitimacy, adding default, provably compliant privacy becomes a pure upgrade. It transforms blockchain from a costly, public ledger into a confidential settlement layer, finally bridging the gap to mainstream institutional and individual adoption of on-chain finance.

链捕手10 saat önce

The "Impossible Triad" Is Fundamentally a Pseudo-Problem

链捕手10 saat önce

Optical Chips: Collective Capacity Expansion

The global optical chip industry is experiencing a massive wave of expansion driven by surging AI data center demand. Major players across the US, Japan, Europe, and China are aggressively investing to ramp up production capacity. In the US, Coherent is expanding its 6-inch Indium Phosphide (InP) semiconductor fab in Texas, supported by CHIPS Act funding and a $2 billion strategic investment from NVIDIA. Lumentum is building a new factory for InP optical devices, and Nokia is scaling its advanced photonic chip packaging and testing capabilities. NVIDIA's investments aim to secure future supply of critical lasers and optical interconnect products for AI infrastructure. Japan's JX Advanced Metals, a leading InP substrate supplier, plans a multi-billion yen investment to increase its capacity 7-10 times, strengthening its grip on the crucial upstream materials market. In Europe, IQE and Tower Semiconductor settled a patent dispute and signed a multi-year InP epitaxial wafer supply agreement, highlighting that next-generation silicon photonics platforms will integrate high-performance InP components. STMicroelectronics and Sivers Semiconductors are also expanding silicon photonics production and partnerships. China is rapidly building out its domestic supply chain. Dongshan Precision's subsidiary, Source Photonics, announced a $12 billion project to expand optical chip and module production. Companies like Sanan Optoelectronics and Yunnan Germanium are scaling up InP chip manufacturing and substrate production, moving towards vertical integration from materials to modules. While debate continues around the exact future architecture—whether CPO (Co-Packaged Optics), NPO, or pluggables will dominate—analysts like Morgan Stanley argue the underlying driver is unchangeable: the explosive growth in bandwidth demand. This will inevitably increase the volume of optical engines, lasers, and related content per GPU, regardless of the final technical path. The competition for "more light" in the AI era has intensified into a global, full-chain capacity race.

marsbit13 saat önce

Optical Chips: Collective Capacity Expansion

marsbit13 saat önce

Stablecoins Finally Find Real Yield: An In-Depth Look at On-Chain Reinsurance Re | A Conversation with Re Founder Karan Saroya

Stablecoin Real Yield Found: A Deep Dive into On-Chain Reinsurance with Re's Karan Saroya As stablecoin supply exceeds $170 billion, the search for sustainable, non-speculative yield intensifies. Re, an on-chain reinsurance platform, provides an answer: connecting stablecoin capital to the trillion-dollar traditional reinsurance market. Re operates as a regulated reinsurer, accepting stablecoin deposits as collateral to back US insurance companies. These insurers pay premiums, generating yield that flows back to on-chain depositors. Currently supporting 35 insurers and underwriting $500 million, Re projects scaling to over $1 billion soon. Key insights from a Bankless podcast with founder Karan Saroya and investor Avichal of Electric Capital: 1. **Uncorrelated, Real-World Yield:** Re offers stablecoin holders access to reinsurance returns (targeting 12-14%+), an asset class entirely separate from crypto or equity markets. 2. **Operational Efficiency via Smart Contracts:** Re replaces traditional, labor-intensive capital fundraising with smart contracts, allowing a ~12-person team to compete with industry giants. 3. **Regulatory Leverage:** For every $1 of collateral, regulations allow backing $5-7 in written premiums. This leverage amplifies returns from the underlying risk-free rate. 4. **DeFi Integration:** Depositors receive receipt tokens, which can be used in protocols like Morpho for "looping," potentially pushing yields to 18-20%+. 5. **The "DeFi Mullet" Model:** A compliant front-end (regulated reinsurer) paired with a decentralized back-end (smart contracts, DeFi capital markets). 6. **RE Governance Token:** Modeled on Lloyd's of London, the token governs the central capital pool's allocation, counterparty acceptance, and parameters. 7. **Real Economic Impact:** Capital funds real-world productivity (factories, clinics, businesses) via insurance, moving beyond crypto's internal loops. The discussion highlights a pivotal moment: DeFi's supply-side infrastructure is now met by real demand for productive yield, potentially kickstarting a flywheel where vast on-chain stablecoin capital seeks these real-world returns.

链捕手14 saat önce

Stablecoins Finally Find Real Yield: An In-Depth Look at On-Chain Reinsurance Re | A Conversation with Re Founder Karan Saroya

链捕手14 saat önce

İşlemler

Spot

Futures