India’s Crypto Boom Could “Force” Policy Shift Amid Growing Investor Demand

India’s Crypto Market Faces Pressure for Policy Change

India’s cryptocurrency landscape is experiencing rapid growth despite stringent taxation and unclear regulations. According to industry experts, this surging demand may ultimately compel the government to rethink its current approach.

Speaking at the Binance Crypto-Powered Tour in Bhutan, crypto educator Sujal Jethwani, who has a community of nearly 400,000 followers, told Cointelegraph that digital asset adoption in India is unstoppable.

“People Are Not Going to Leave Crypto”

“If you look at the numbers, stock market and forex traders are moving into crypto,” Jethwani said. “There’s a huge surge of crypto traders and investors in India right now. People are not going to leave it.”

Despite regulatory ambiguity and high tax burdens, the momentum suggests crypto is here to stay. Jethwani compared India’s market conditions to a “suppressed spring”—with pressure building for a potential breakout.

India’s Harsh Tax Regime on Digital Assets

India’s current tax structure is among the most restrictive globally:

• 30% flat tax on profits from virtual digital assets (VDAs).

• 1% Tax Deducted at Source (TDS) on all transactions above ₹10,000 (≈$115), deducted from buyers or sellers.

Critics argue these policies have significantly reduced market liquidity and pushed many traders to offshore platforms.

Mounting Political Awareness: A Bitcoin Reserve for India?

While India lacks a comprehensive crypto regulatory framework, political interest is growing. On June 26, Pradeep Bhandari, national spokesperson for the ruling party, urged the government to explore creating a Bitcoin reserve and implement clear guidelines.

This move echoes global trends, with countries like the United States and El Salvador experimenting with Bitcoin as part of national strategies.

User Demand Will “Force” a Shift, Expert Predicts

Although regulatory reform may not happen immediately, Jethwani believes change is inevitable:

“The Indian government is going to take it seriously sooner or later. They have to. Based on India’s tech adoption history, progress may be slow—but users will force it.”

According to him, the combination of growing adoption, institutional interest, and political pressure will eventually result in favorable crypto regulations.

Key Takeaways

• India’s crypto community is growing fast despite harsh taxes.

• Experts compare the situation to a “suppressed spring” ready to surge.

• Calls for a Bitcoin reserve signal political acknowledgment.

• Regulatory clarity is inevitable as user demand continues to rise.

Related: Bitcoin ‘Golden Cross’ That Sparked 2,000% BTC Gains Is Already Here