Sumit Gupta, the CEO of CoinDCX, is advocating for a substantial reduction in TDS (Tax Deducted at Source) from 1% to 0.01%.

The implementation of the 1% TDS last year had a detrimental impact on trading volumes in crypto exchanges.

There is hope for a more favorable crypto tax system in India, although it may still be two years away.

The cryptocurrency industry in India has faced significant challenges since the introduction of the 1% Tax Deducted at Source (TDS) on crypto transactions. This tax was intended to regulate the rapidly growing sector but unintentionally led to a decline in trading volumes. Notably, market makers and high-frequency investors, who play crucial roles in the trading ecosystem, reduced their activities due to increased costs.

In response to this downturn and in representation of the concerns of many, Sumit Gupta, the CEO of CoinDCX, has taken proactive steps. Gupta has disclosed that CoinDCX is actively engaging with the Indian government to advocate for a substantial reduction in TDS, lowering it from the current 1% to a more manageable 0.01%. He believes that such a change would significantly alleviate the financial burden on investors and stimulate trading activities.

Nonetheless, while discussions persist and the cryptocurrency community maintains optimism, the shift towards a more forgiving cryptocurrency tax system may take a bit longer to materialize. According to Gupta, it’s possible that it could be another two years before the industry experiences this kind of transformation.

For cryptocurrency enthusiasts in India, this translates to a period of waiting. However, with influential figures like Gupta leading the charge, there remains a ray of hope that the market will eventually recover, supported by favorable regulatory actions.