Despite High Taxes, Indian Crypto Community Continues to Grow
India’s crypto adoption is booming—even under the weight of restrictive tax laws and regulatory uncertainty. According to crypto educator Sujal Jethwani, the surging demand for digital assets is likely to force the Indian government to shift its stance on crypto sooner rather than later.
Jethwani, who commands a following of over 400,000 across social media, spoke to Cointelegraph during the Binance Crypto-Powered Tour in Bhutan. He noted that a significant number of stock and forex traders are transitioning to crypto markets despite punitive tax rates, including a 30% flat tax on crypto profits and a 1% tax deducted at source (TDS) on all transactions over $115 (₹10,000).
“People are not going to leave it,” Jethwani stated, emphasizing the resilience and enthusiasm of India’s crypto community.
A “Suppressed Spring” of Crypto Potential
Jethwani described India’s crypto environment as a “suppressed spring” — under pressure but poised for explosive growth. Despite a lack of regulatory clarity, crypto trading is thriving across major platforms, driven by increasing awareness, education, and accessibility.
The current tax policy, critics argue, is hampering market liquidity and deterring institutional interest. Yet, traders remain active, and digital asset interest continues to spread beyond Tier 1 cities into rural regions.
“The Indian government tries to suppress crypto through harsh taxes and TDS,” he said. “But demand will eventually override that.”
Political Momentum Builds Around Bitcoin
Recent political developments also suggest that change could be on the horizon. Pradeep Bhandari, a national spokesperson for India’s ruling party, publicly advocated for the creation of a national Bitcoin reserve, signaling growing interest in developing a sovereign crypto strategy.
This marks a key moment in India’s crypto journey, as policymakers begin to recognize the strategic and economic potential of blockchain technologies and digital assets.
The Future: User-Led Regulatory Change
Jethwani believes that public demand will ultimately drive regulatory reform, even if the process is gradual.
“The Indian government is going to take it seriously sooner or later. Users will force it,” he said.
As adoption accelerates, India stands at a pivotal point: embrace crypto innovation—or risk being left behind in the digital economy of the future.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.