A prominent crypto key opinion leader in India believes the government won’t be able to suppress the growth of digital assets as demand continues to rise.
During the Binance Crypto-Powered Tour in Bhutan, Sujal Jethwani—a crypto educator with a social media following of around 400,000—shared his optimism about a potential shift in India’s political stance toward cryptocurrencies.
“If you look at the numbers, stock market and forex traders are moving into crypto,” Jethwani said. “There’s a massive surge of crypto traders and investors in India right now. People aren’t going to walk away from it.”
He added that this growing interest could push the Indian government to reconsider its current stance, which includes a lack of regulation and steep taxation on crypto assets.
India’s crypto landscape is like a “compressed spring ready to bounce”
Jethwani compared India’s current crypto environment to a “suppressed spring,” suggesting that despite heavy restrictions and steep taxes, interest in digital assets continues to surge.
“The Indian government tries to suppress crypto through harsh taxes and TDS,” he said, referring to the 1% tax deducted at source (TDS), which many in the industry argue has severely hindered trading activity.
Under India’s Income Tax Act, profits from the sale of virtual digital assets (VDAs) are taxed at a flat rate of 30%. Additionally, a 1% TDS is levied on all crypto transactions exceeding $115, deducted from either the buyer or the seller.
Although the country has yet to implement a comprehensive regulatory framework for cryptocurrencies, Jethwani told Cointelegraph that pressure is building. He pointed to increasing political engagement, including a recent push for a national Bitcoin reserve.
On June 26, Pradeep Bhandari, national spokesperson for India’s ruling party, urged the government to explore launching its own Bitcoin reserve—following the example set by the United States. He also called for clearer regulations and emphasized India’s potential to develop a sovereign Bitcoin strategy.
Change may be gradual, but users will ultimately drive the shift
“The Indian government will have to take it seriously sooner or later,” Jethwani told Cointelegraph, acknowledging that change may not come swiftly. He noted that, based on India’s track record with adopting new technologies, progress could be gradual.
Still, Jethwani believes the momentum is inevitable. “Users will force it,” he said. “Eventually, it’s going to happen. The government will take it seriously, and we’ll see more favorable regulations in place.”
