Union Budget 2025: Cryptocurrency Industry Hopes For A More Favourable Regulatory Environment

The upcoming Union Budget presents a critical opportunity to foster innovation and growth within the burgeoning Web3 sector

The country’s cryptocurrency sector has faced numerous challenges, particularly due to the high taxation that was imposed in 2022.

Experts believe that the government will recognize the need for a more favourable regulatory environment that will include lowering the current one per cent TDS and 30 per cent capital gains tax on virtual digital assets (VDAs) to levels that help the industry grow and come up with new ideas.

Talking to Bizz Buzz, Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, says, “As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025, we at BuyUcoin hope to see big forward steps for the Web3 industry.”

Going further, he said, “We'd like to see policies that not only encourage people to invest but also bring talented folks back to India so that Web3 startups can thrive. The government can make the most of blockchain technology and decentralized finance by setting clear guidelines and changing tax rules. With such measures in place, I am sure that India can become a world leader in Web3. This is an opportunity for the government to solidify its commitment to building a strong digital economy that benefits all stakeholders involved”.

Indeed, the upcoming Union Budget presents a critical opportunity to foster innovation and growth within the burgeoning Web3 sector.

Anish Jain, founder of W Chain, points out, “We expect the government to consider several key measures. Foremost among them is the need for a well-defined regulatory framework that encourages responsible innovation and fosters a pro- Web3 businesses environment. Secondly, incentives for research and development in blockchain technology can drive innovation and attract talent. Thirdly, come up with initiatives that upskill the workforce in blockchain. Fourth is the need to develop scalable blockchain infrastructure, especially high-speed internet connectivity and access to affordable cloud computing resources.”

Jain added, “Specifically for W Chain, we expect the government to recognize the potential of blockchain-powered payment solutions in driving financial inclusion and boosting economic growth”.

India’s stance on crypto regulation is being followed by nations worldwide. It is vital for the global crypto ecosystem's growth and for the country’s dominance into becoming a financial and business hub. A balanced approach in the 2025 budget could provide immense potential for innovation and financial inclusion for crypto. Reducing the currently implied heavy taxations on digital assets can increase mass adoption and transparency for crypto.

Gracy Chen, CEO of Bitget, says, “We see India as a key market for crypto growth, and regulatory clarity can help build an environment for secure and inclusive financial solutions around crypto. Collaboration between policymakers and industry leaders will be essential to ensure that this sector thrives responsibly.”