India’s treatment of Virtual Digital Assets (VDAs) over the past few years has been marked by a clear contradiction: the ecosystem is heavily taxed and monitored, yet fundamentally unrecognized within a coherent regulatory framework. This ‘tax-first, regulate-later’ approach has shaped market behavior in ways that domestic regulators are now urgently confronting, particularly amid ongoing parliamentary reviews into digital asset oversight. The Finance Act, 2022, imposed a flat 30% tax on gains and a 1% Tax Deducted at Source (TDS) on every transaction. While this was intended to create a reporting…
Read MoreIndia’s VDA Policy at a Crossroads as Policymakers Take Stock
