India Calls for Clear Rules on Crypto to Keep Money Home

A member of India’s upper house said the country should set up clear rules for digital money. He pointed out that India already taxes gains from crypto at 30 percent, yet treats it as illegal. This mix of high taxes and unclear laws pushes traders to move abroad. The tax on virtual assets is flat at 30 percent, no matter how long the asset is held. There is also a 1 percent fee on every sale or transfer. Because the rules are vague, most trading happens overseas. A study by a crypto‑tax firm found that almost 73 percent of India’s trading volume—about $5. 6 billion—occurs on foreign platforms.The lawmaker said that if India created a “sandbox” with proper safeguards, it could keep the money inside and raise more tax revenue. He urged that regulation protects innovation. “Let us not fear new ideas, let’s put rules in place, ” he said. The government has delayed a bill that would set clear crypto laws. India’s top court criticized the delay, calling it unfortunate. The Reserve Bank of India said stablecoins, which are tied to foreign currencies, do not fit the definition of a sovereign currency. It warned that using them could increase dependence on the U. S. dollar and weaken India’s own money.