India Prepares for Major Cryptocurrency Regulatory Reform in 2025

India is gearing up for a significant overhaul of its cryptocurrency market. In June 2025, the country plans to release a debated regulatory document, marking the first step toward establishing comprehensive legislation, as current laws only include taxes. Presently, India imposes a 30% tax on crypto profits and a 1% TDS on transactions, leading to a massive 90% user exodus to foreign platforms. The industry is calling for reforms such as reducing TDS to 0.1%, simplifying rules, and restoring trading volumes on local exchanges. The new regulation will consider recommendations from the IMF and the Financial Stability Board, as well as international experience. External pressure also stems from Trump’s support for crypto, pushing countries to accelerate decisions. The Reserve Bank of India is no longer imposing bans but awaits consultation results. If India adopts sensible rules, it could re-attract millions of users, capital, and trust, making June 2025 a pivotal date for Asia’s crypto ecosystem. This shift aligns with the global trend toward digital transformation, from ISO 20022 to tokenization.