“India’s rapid adoption of blockchain and virtual digital assets (VDA) reflects both the scale of its digital economy and growing participation by retail users. The forthcoming budget presents an opportunity to strengthen the VDA ecosystem through measured regulatory and tax refinements that protect users, maintain financial stability, and support responsible market development.
From a tax perspective, a pragmatic framework focused on capital gains realised, with provisions for limited loss set off and removal on transaction level levies in favour of net-revenue generating corporate taxes instead, can improve fairness for retail participants and indicate to them India has moved past the tax-and-deter regime towards a fuller license-and-supervise one.
Clear, consistent operating standards for VDA platforms, aligned with India’s AML/KYC and investor protection priorities, will encourage responsible capital investment, create skilled jobs, and build domestic capabilities.
India’s approach to blockchain governance, combined with its strong digital public infrastructure, provides a solid foundation to integrate innovation with transparency, financial inclusion, and economic growth objectives. A balanced regulatory environment that safeguards users, supports innovation, and ensures predictable taxation will help India convert high participation into durable economic value and reinforce its position as a leading fintech hub.”
