18-8-2025 – India’s Central Board of Direct Taxes (CBDT) has initiated a consultation with domestic cryptocurrency exchanges to review the country’s virtual digital asset (VDA) regulations, detailed by Panewslab, and further covered by The Economic Times.
The effort signals a potential overhaul of India’s crypto tax framework, with exchanges required to submit responses by mid-August. The consultation addresses critical issues, including the effectiveness of current VDA laws, the impact of the 30% flat tax and 1% transaction tax, and the migration of $3.8 billion in trading volume to offshore platforms since 2022.
Exchanges are also asked to suggest oversight agencies and propose measures to compete with foreign markets. This follows years of industry calls for clearer regulations amid India’s growing crypto adoption, with 7.3% of its population owning digital assets by 2021.
The move underscores India’s intent to refine its crypto policy, especially after its G20 presidency highlighted structured regulation. The existing tax regime has been criticized for pushing users to unregulated platforms, and this dialogue could reshape market dynamics. The involvement of multiple stakeholders suggests a comprehensive approach.
