The Growth of Crypto in India: A Regulatory Review
India’s Financial Intelligence Unit (FIU) is currently assessing registration requests from four foreign crypto exchanges, with two potential approvals expected by the end of the year.
The Evolution of India’s FIU Approval Process and Regulatory Hurdles Faced by Foreign Exchanges
Prior to India’s 2023 regulatory crackdown, the two exchanges under review will undergo a detailed evaluation of their operations, particularly regarding previous non-compliance issues.
- Strict compliance measures are in place to ensure only compliant exchanges operate in India.
- The approval process is stringent, with penalties determined based on past non-compliance and operation scope within India.
The Changing Landscape of the Indian Crypto Market and Its Associated Challenges
India was ranked as the country with the highest cryptocurrency adoption rate in 2023, driven by a tech-savvy young population and increasing smartphone usage.
- Over 20 million registered crypto investors are in India, a significant increase from the previous year.
- India’s crypto-related revenue surpassed $1 billion, attracting foreign exchanges seeking expansion.
Diving Deeper into India’s Regulatory Environment and Tax Implications for Crypto
Despite the market growth, India maintains a stringent regulatory environment for foreign exchanges operating within its borders.
- All crypto investments are subject to a flat 30% tax rate.
- Regulations also require deductions at the source for crypto-related transactions.
Hot Take: Embracing Crypto Opportunities Amid Regulatory Challenges
As India navigates the complexities of crypto regulation, opportunities for growth and expansion remain prevalent in this dynamic market.
Sources:
By
By
