India's Crypto Regulation on Shaky Ground as US Proposes Legislation

India has taken a cautious approach to regulating cryptocurrencies, primarily relying on taxation and silence. The government imposes a 30% tax on profits from cryptocurrency transactions and a 1% TDS on transactions, but there is no comprehensive law governing digital assets. As a result, exchanges operate with limited clarity, investors have little formal protection, and startups are uncertain about the long-term policy direction.

The situation may change soon as the US appears to be moving in the opposite direction. The proposed crypto legislation in the US could end up shaping the future of India's crypto industry. With global regulators setting a new standard, India may have to rethink its approach and introduce formal regulation for digital assets.