“Looking at the trends, it’s clear that most stock market and forex traders are transitioning to cryptocurrencies,” Jethwani conveyed to Cointelegraph. “We’re witnessing a significant influx of crypto investors and traders in India presently. There’s no going back for them.”

Jethwani is hopeful that the growing demand will prompt the Indian government to reconsider their unregulated and heavily taxed treatment of cryptocurrencies. He metaphorically referred to India’s present crypto environment as a “compressed spring,” indicating that regardless of the stringent regulations and high taxes, people are still gravitating towards digital assets.

“The Indian authorities attempt to curb crypto with hefty taxes and TDS (Tax Deducted at Source)”, Jethwani explained, highlighting the 1% TDS that many believe has hampered trading activity. The existing Indian Income Tax Act imposes a flat rate of 30% tax on profits made from selling Virtual Digital Assets (VDAs), in addition to the 1% TDS that applies to all crypto transactions above $115, deducted from either the buyer or seller of VDAs.

While comprehensive regulatory guidelines for crypto are yet to be introduced in India, Jethwani stated that the pressure is escalating. He cited increasing political consciousness and recent demands for a Bitcoin reserve initiative. On June 26, Pradeep Bhandari, a spokesperson for the ruling party in India, suggested the country consider setting up its own Bitcoin reserve, following the example set by the US. Bhandari also stressed the need for regulatory clarity and the potential for India to establish a sovereign Bitcoin strategy.

Despite the likely slow pace of progress, Jethwani believes user demand will “force” a shift. “It’s inevitable. The government will eventually have to take it seriously and we can expect more favorable regulations,” Jethwani asserted to Cointelegraph.

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