India’s Crypto Tax Policy Pushes Trading Offshore as…
By Karthik Subramanian
AI summary of the source article
India's crypto tax regime, including a 30% gains tax and a 1% TDS, has driven significant trading volume to offshore platforms. Domestic trading activity dropped sharply following the implementation of the rules, which remained unchanged in the 2026 Union Budget.
Why it matters
The migration of cryptocurrency trading creates challenges for authorities attempting to monitor transactions and enforce reporting obligations, as overseas trading activity can be more difficult to supervise than transactions conducted through locally regulated exchanges.
Key facts
- India imposes a 30% tax on gains from virtual digital assets and a 1% TDS on covered cryptocurrency transfers without loss offsetting.
- Esya Centre research showed domestic exchange trading volumes fell by up to 81% in the four months following the introduction of the TDS.
- Indian investors conducted more than ₹3.5 trillion in crypto transactions on offshore platforms between July 2022 and July 2023.
Source excerpt · FinanceFeeds
India's cryptocurrency taxation framework is increasingly being questioned over its impact on domestic trading activity, with industry research indicating that high transaction costs have encouraged investors to move toward offshore exchanges and alternative trading products. The government continues to impose a 30% tax on taxable gains from virtual digital assets, alongside a 1% tax deducted at s…