Kiran Vivekananda

Chief Public Policy Officer, CoinDCX

[Hardeep Singh @i_hardeepsingh]

The tax framework for crypto in India was brought about to:
- enhance visibility into transactions,
- enhance tax revenue, and
- curtail growth of digital assets trading.
However, as per a recent report published by TKF [1], the framework has not met any of its objectives.

For some time now, India has been one of the largest crypto-adoption markets in the world. While the headline that “India is No. 1 globally” is not strictly accurate in absolute terms, the reported trading-volume data places India at the top in APAC [2] - ahead of Japan and Australia - comparable to leading developed markets. The demand for crypto as a tradable asset class is real, broad-based, and expanding. In fact, adoption and activity have doubled year-on-year - but a large portion of this growth is now taking place on offshore exchanges.

The core policy problem is asymmetric enforcement. Domestic exchanges deduct TDS and report data. Offshore exchanges do neither. The result is predictable: users and liquidity migrate offshore, beyond the tax net. Switching costs are effectively zero - much like the post-ban migration observed in China, where firewalls did little to prevent traders accessing offshore venues [3].

This behavioural shift is now visible in numbers.
1. Between Oct ’24 - Oct ’25, Indians traded an estimated ₹4.87 lakh crore on offshore platforms.
2. At a 1% TDS, this implies ₹4,877 crore of uncollected TDS in just one year.
3. Since the introduction of the TDS framework in 2022, the cumulative leakage has now crossed ₹11,000 crore.

Capital-gains taxation reflects the same pattern.
At a 30% rate without loss set-off, the incentive to report is weak. Based on offshore trading volumes, India has already lost approximately ₹36,000 crore in capital-gains taxes since 2022.

The solution is not more restrictions, it is better design.
A calibrated framework - low TDS (0.01%–0.1%) + SFT-style reporting across all exchanges (domestic and offshore) - can rebuild transactional volumes and widen the tax base.

In parallel, India needs a rational capital-gains regime for crypto:
- LTCG/STCG parity with other asset classes,
- loss set-off and carry-forward, and
- consistent treatment now that courts recognise VDAs as “property.” [4]

Such a regime would bring activity back into the formal system, expand compliance, and increase revenue - without stifling innovation.

Even if India does not want to fully regulate this sector today, it is essential to upgrade the tax framework and align it with global standards. Bring users onshore. Bring compliance onshore. Bring revenue onshore.

[Sumit Gupta (CoinDCX) @smtgpt]

Crypto price tickers in the @CoinDCX office. 😍

Have always seen them in movies and newsrooms. Gives a different kind of vibe when you are in the trenches and building. Had to bring that energy to our office! 💪

[Neeraj Khandelwal @neerajKh_]

Cybercrime is an attack on trust. And when one of us is targeted, all of us feel it. At @CoinDCX, we’re committed to fighting back against the attackers. Hence, I am announcing our Recovery Bounty Program.

Up to 25% of any recovered funds will be awarded to individuals or teams who can help trace and retrieve the stolen crypto, but more importantly assist in the identification and conviction of those involved.

A big thank you to our customers for the trust and faith in us and also a big thanks to our friends and partners @sygnia_labs, @zeroshadow_io, @_SEAL_Org, @SolanaFndn, @SuperteamIN, @WormholeFdn, @deBridgeFdn who are helping us identify the culprits and also supporting us.

You can read more here-> https://t.co/wsC1I61OQO

[Sumit Gupta (CoinDCX) @smtgpt]

[INR Withdrawals Update] We have processed 100%, I repeat, one hundred percent 💯 of INR withdrawal requests on the platform.

Check your bank account and let us know if your request is still pending.

Big or small, every request has been processed successfully. ❤️

Thanks for all your love and support you’ve shown during this tough phase! ❤️

[Sumit Gupta (CoinDCX) @smtgpt]

Who here is willing to extend voluntary pro-bono support to @BWA_Ind – India’s Web3 industry association?

We need the community to help India adopt crypto the right way.

✋ Comment “Yes” and if possible add 1-liner on how you can help (policy, design, content, influence, legal, or anything). I’ll compile and share this list with BWA folks to reach out.

[Ministry of Culture @MinOfCultureGoI]

Sh R Venkatesh, Sr. VP & Head- Public Policy, CoinSwitch and Sh Dilip Chenoy, Chairperson, Bharat Web3 Association met with the Secretary, @MinOfCultureGoI, Sh Vivek Aggarwal today at Shastri Bhawan to discuss the possibilities of joint collaboration.

#CultureUnitesAll

[LOK SABHA @LokSabhaSectt]

The Select Committee of Lok Sabha to Examine the Income-Tax Bill, 2025 met today under Chairpersonship of Shri @PandaJay, MP, to take oral evidence from representatives of @MCA21India, @nfrasocial, @BWA_Ind and @nasscom.

[Kiran Vivekananda @cbkir2003]

@IncomeTaxIndia @nsitharamanoffc @officeofPCM @FinMinIndia @PIB_India In FY 2024 alone, India's crypto volume was close to 3.5 lakh crores of which, 90% was on offshore exchanges.
Since The introduction of tax, uncollected TDS of 1% has been estimated to be 6000 crores.

[Kiran Vivekananda @cbkir2003]

@IncomeTaxIndia @nsitharamanoffc @officeofPCM @FinMinIndia @PIB_India The session should have been titled ' Implementing In-effective Tax Administration of Crypto Assets' and should have invited CBDT to share their experience. Since introducing Tax on Crypto, 97% of India's crypto volumes have moved offshore to evade taxes.

[Kiran Vivekananda @cbkir2003]

@BWA_Ind @RBI @PMOIndian @narendramodi @nsitharamanoffc @FinMinIndia @GoI_MeitY @IndianCERT @HMOIndia @Cyberdost @jagograhakjago # bharatweb3association #bharatweb3 #web3 #crypto #bitcoin #blockchain #ethereum #cryptotrading #nft #defi #cryptonews #cryptoinvestor #btc #eth #trading #exchange #cryptoawareness #fiuindia #cyberdosti #Crypto #virtualdigitalassets #VDAs #VASPs

[Bharat Web3 Association @BWA_Ind]

अपने क्रिप्टो ट्रेडिंग खातों और लिंक किए गए बैंक खातों को सुरक्षित रखने के लिए मजबूत पासवर्ड का उपयोग करें।

@RBI @PMOIndian @narendramodi @nsitharamanoffc @nsitharamanoffc @FinMinIndia @GoI_MeitY @IndianCERT @HMOIndia @Cyberdost
@jagograhakjago

[Bharat Web3 Association @BWA_Ind]

Beware of fake crypto platforms and exchanges: Verify website URLs carefully.

@RBI @PMOIndia @narendramodi @nsitharamanoffc
@nsitharamanoffc @FinMinIndia @GoI_MeitY
@IndianCERT @HMOIndia @Cyberdost
@jagograhakjago

[Bharat Web3 Association @BWA_Ind]

Do not trade on crypto investment tips based on WhatsApp, Telegram or Unauthorised channels .

@RBI @PMOIndia @narendramodi @nsitharamanoffc
@nsitharamanoffc @FinMinIndia @GoI_MeitY @IndianCERT @HMOIndia @Cyberdost @jagograhakjago

[chandra raj mohan @chandrarajmoha2]

@BWA_Ind @RBI @PMOIndia @narendramodi @nsitharamanoffc @FinMinIndia @GoI_MeitY @IndianCERT @HMOIndia @Cyberdost @jagograhakjago #WazirxScam

[CoinDesk @CoinDesk]

India should consider revising its taxes on crypto and not depend on its AML rules to reverse the impact of those high taxes, a survey of savvy Indian investors by @esyacentre, a New Delhi-based technology policy think tank revealed. By @Amitoj.Singh

https://t.co/JkZ5TpPoBa

[Sumit Gupta (CoinDCX) @smtgpt]

Through media reports, we understand that the Government of India, has constituted an Inter-ministerial Group to review and release a consultation paper on Crypto regulation. 

We are pleased to note that! The #Web3 industry is evolving quickly and is very dynamic.

We take this opportunity to appeal to the government & @FinMinIndia to seek inputs from domestic businesses before releasing the consultation paper. 🙏

cc: @nrjkhandelwal, @CoinDCX, @BWA_Ind

[Sumit Gupta (CoinDCX) @smtgpt]

There have been many questions today about the recent #WazirX news.

Sharing this short video to clarify how your funds are safe on @CoinDCX:

🔒100% customer funds in cold wallets
🛡️ ISO 27001 certified security
🔐 MPC, 2FA, and advanced encryption
📜 Regular security and compliance audits
🔍 Real-Time proof of reserves (Link in the comments below)

[Crypto India @CryptooIndia]

Even Hitler is mad at Germany selling their #Bitcoin

Credit to @BTCGandalf

[Sumit Gupta (CoinDCX) @smtgpt]

🇮🇳🫡 Born in India, but serving the world!

Thank you for covering our story, @ETNOWlive, @avannedubash. We spoke about:

1⃣ The recent @bitoasis acquisition by @CoinDCX
2⃣ Our global expansion strategy (w/@nrjkhandelwal)
3⃣ The current global regulations around #crypto

[Sumit Gupta (CoinDCX) @smtgpt]

Excited to share that CoinDCX has acquired BitOasis, the leading crypto platform in the MENA region!

In six years, @CoinDCX has gone from a small startup to a multi-product and now multi-country organization.

This first-of-its-kind transformative deal will empower us to expand our presence and impact globally. w/@nrjkhandelwal, @odoudin

A short thread on why and how. 🧵👇