A crypto key opinion leader in India said the government will be unable to suppress crypto as digital-asset demand increases.
Speaking to Cointelegraph at the Binance Crypto-Powered Tour in Bhutan, Sujal Jethwani, a crypto educator with a community of about 400,000 across social media, expressed optimism that the Indian political landscape will change as more people get into crypto assets.
“If you see the numbers, all the stock market and forex traders are moving to crypto,” Jethwani told Cointelegraph. “There’s a huge surge of crypto traders and investors in India right now. People are not going to leave it.”
Jethwani said he hopes this demand will catalyze the Indian government to change their unregulated and heavily taxed approach to crypto.
India’s crypto landscape is a “suppressed spring”
Jethwani likened India’s current crypto landscape to a “suppressed spring,” saying that despite its restrictive rules and high taxes, traders are flocking to crypto assets.
“The Indian government tries to suppress crypto through harsh taxes and TDS,” Jethwani said, referencing the 1% tax deducted at source (TDS), which crypto proponents argue has stifled trading activity.
The country’s Income Tax Act applies a 30% flat rate tax on profits from selling virtual digital assets (VDAs). Furthermore, the 1% TDS applies to all crypto transactions exceeding $115. This is deducted from either the seller or the buyer of VDAs.
While India has not yet introduced a comprehensive regulatory framework for crypto, Jethwani told Cointelegraph that pressure is mounting. He pointed toward growing political awareness, including a recent call for a Bitcoin reserve pilot.
On June 26, Pradeep Bhandari, the national spokesperson for India’s ruling party, asked the country to consider launching its own Bitcoin reserve, following the United States’ lead. He also called for regulatory clarity and said the country was positioned to create a sovereign Bitcoin strategy.
Related: India’s Bitcoin crossroads: Will it add BTC to national reserves?
Progress may be slow, but users will “force” a shift
“The Indian government is going to take it seriously sooner or later. They have to,” Jethwani told Cointelegraph. He also recognized that the country may not act quickly. He said that based on India’s history of adopting new technology, progress may be slow.
Despite this, he said that users will “force it.” “Eventually, it’s going to happen. The government will take it seriously, and we are going to get favorable rules,” Jethwani told Cointelegraph.
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