India's Crypto Regulations Poised for Change: GetBit Founder Predicts Shift Towards Balance

India's cryptocurrency landscape is poised for change as GetBit Founder Abhay Agarwal predicts a shift towards a more balanced regulatory framework. Speaking to Coinpedia, Abhay noted that the current 30% tax on crypto gains and 1% Tax Deducted at Source (TDS) are high compared to other asset classes.

The TDS effectively acts as a liquidity tax, disproportionately impacting active market participants. As a result, much of India's trading activity has migrated offshore since the rule was introduced. Abhay emphasized that 'liquidity attracts talent, capital, entrepreneurs, developers, and investors' and warned that the loss of onshore liquidity would have far-reaching consequences for the broader ecosystem.

Abhay believes that a reduction in TDS is likely to be the first major change within the next two to four years. He emphasized the need for regulatory clarity and called for a review of the 1% TDS framework to restore liquidity on compliant Indian platforms.