Cryptocurrencies are no longer just a debate. Governments have gone from thinking of whether digital assets belong in the financial system to lining up plans for execution and usage. The market, too, for its part, has matured alongside it all.
India, however (a $4+ trillion economy), remains paused in an in-between space. The issue now is what the country’s continued hesitation means... at a time when other major economies have already gained a competitive edge.
No policy clarity? That’s okay!
India has an estimated 100 million crypto users, making it one of the largest (and fastest-growing) user bases globally. Trading crypto is legal, heavily taxed (flat 30% on profits, with 1% TDS), and closely monitored.
However, it still exists outside a coherent policy vision for what role digital assets are meant to play.
This has created a peculiar half-position.
The state benefits from participation through taxation, but stops short of formally recognizing crypto as part of the architecture. As a result, the ecosystem has grown in volume and users, but without the certainty that stakeholders treasure.
As Abhay Agarwal, Founder and CEO of GetBit, told AMBCrypto,
“...Changes would keep capital in India... and give India a great opportunity to take on the role of a thoughtful and responsible leader of the emerging digital asset economy...”
Indecision is expensive
In India’s case, the absence of a defined crypto framework has redirected participation.
Trading activity moved offshore, beyond domestic oversight and policy reach. Recent estimates say that Indian users generated close to ₹5 lakh crore (approx. $5 trillion) in trading volume on offshore crypto exchanges between October 2024 and October 2025.
