India pushes for a Digital Asset Regulatory Authority to drive the future of crypto

India should establish a Digital Asset Regulatory Authority (DARA) by the end of 2025 or early 2026 to enhance its role in the global cryptocurrency ecosystem, according to Hindu Business Line. A recent report by Blue Aster Capital and Crebaco Global emphasizes India's growing significance, noting that the country accounts for 11.8% of global crypto developers and 5.4% of Web3 creators. The report advocates for regulatory reforms focusing on taxation, anti-money laundering compliance, and investor protection.

Specifically, it suggests differentiating between long-term and short-term tax treatments for crypto assets and reducing the current tax deducted at source (TDS) rate from 1% to 0.01%. The report highlights that without a proper regulatory framework, the Indian crypto ecosystem remains in a grey area, leading to issues such as lack of transparency and security concerns. It anticipates the formation of a standing committee during the Budget session to present relevant legislation by late 2025.

India's approach to cryptocurrency regulation has evolved since a proposed ban in 2019 that was never enacted. The report predicts a shift from speculative trading towards practical utility in the crypto space, aiming to create a decentralized and inclusive digital ecosystem. Vishal Sacheendran, Head of Regional Markets at Binance, expressed hope that India will emerge as a global hub for crypto innovation through comprehensive regulations.