Manish Yadav
Crypto Industry Disappointed as Union Budget 2025 Ignores Key Concerns
Despite expectations and repeated appeals, the Indian cryptocurrency and Web3 sector has been left disheartened by the Union Budget 2025–26. While the government introduced tax relief measures for individuals and businesses, it failed to address the most pressing concerns raised by India’s digital asset ecosystem.
🔍 What the Industry Wanted
The crypto industry has long been urging the government to:
- Reduce the 1% TDS under Section 194S
- Provide regulatory clarity for digital assets
- Ensure parity between Indian and offshore exchanges
- Recognize and support tax-compliant Virtual Asset Service Providers (VASPs)
Unfortunately, these issues were not addressed in the current budget.
💬 Voices of the Industry
📉 Sumit Gupta, Co-founder of CoinDCX
Gupta expressed frustration over the continued 1% TDS burden on Indian exchanges:
“There is no relief to the crypto industry in Budget 2025. We were hoping for amendments to create parity between tax-compliant VASPs and non-compliant offshore exchanges.”
He emphasized that international platforms operate without facing the same tax deductions, placing Indian exchanges at a competitive disadvantage. Gupta also warned that new compliance provisions for individuals could increase the regulatory load on already compliant domestic platforms.
⚖️ Shivam Thakral, CEO of BuyUcoin
Thakral had mixed reactions to the budget. He welcomed the simplification of TDS structures as a positive step for businesses, but stressed the continued lack of clarity in crypto taxation:
“Reducing TDS thresholds can help Web3 businesses, but we need decisive action to reduce uncertainties.”
He also noted that broader startup reforms—such as the ‘Fund of Funds’ initiative and extended incorporation period—may offer some indirect support to the Web3 ecosystem.
💸 Ashish Singhal, Co-founder of CoinSwitch and Lemonn
Singhal acknowledged the tax relief for the middle class, especially the zero-tax bracket up to ₹12 lakh, but refrained from directly commenting on its impact on crypto platforms:
“This will boost disposable income and consumer demand. Rationalisation of TDS/TCS could ease compliance, but we need crypto-specific reforms.”
⚠️ Major Industry Concerns Still Unresolved
- No reduction in TDS on crypto transactions
- No classification or tax treatment clarity on digital assets
- Unequal enforcement of tax rules between domestic and international exchanges
- Increased compliance burden for Indian Web3 startups
These oversights have left industry stakeholders questioning the government’s commitment to embracing Web3 and blockchain innovation.
🌐 What This Means Going Forward
While broader measures like startup support and tax relief for individuals are appreciated, crypto-specific reforms are still missing. With offshore exchanges gaining an unfair edge and domestic platforms facing high compliance costs, the sector continues to navigate in regulatory uncertainty.
Unless these issues are addressed, India risks falling behind in the global digital asset economy. Stakeholders now look to ongoing parliamentary sessions and potential future reforms for the clarity they desperately need.
