Union Budget 2025-26: Mixed Reactions from India’s Crypto & Web3 Industry

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has received mixed reactions from India’s Web3 and cryptocurrency sectors. While the rationalisation of Tax Deducted at Source (TDS) rates was seen as a positive step, industry leaders expressed disappointment over the lack of regulatory clarity and tax relief for Virtual Digital Assets (VDAs).

Shivam Thakral, CEO of BuyUcoin, appreciated the move to streamline TDS rates, stating that it could enhance clarity and compliance for Web3 businesses. However, he urged the government to establish a committee to review business regulations and create a more startup-friendly ecosystem. He emphasized the need for clear guidelines to encourage domestic and foreign investments in digital assets.

The Bharat Web3 Association (BWA) acknowledged the government’s continued focus on digital transformation but expressed disappointment over the unchanged VDA taxation framework. “Despite data-backed justifications, the government has not introduced changes to the existing tax structure, which affects industry growth and investor participation,” said BWA Chairman Dilip Chenoy.

Avinash Shekhar, Co-Founder & CEO at Pi42, noted that while the budget emphasizes technological advancements, the absence of direction for VDAs has left the crypto ecosystem feeling overlooked. He highlighted concerns over India’s high 30% tax on crypto gains and 1% TDS, which continue to push Indian investors and tech talent toward crypto-friendly nations like Singapore and Dubai.

Ashish Singhal, Co-founder of PeepalCo, pointed out both positives and negatives in the budget. He welcomed the government’s decision to mandate reporting of crypto transactions, which he sees as a step toward regulatory clarity. However, he criticized the continued heavy taxation on crypto trades, making trading in India expensive.

Sumit Gupta, Co-founder of CoinDCX, expressed concern over the lack of parity in tax treatment between Indian and international crypto exchanges. He urged the government to enforce the same TDS obligations on offshore exchanges to ensure fair competition for compliant Virtual Asset Service Providers (VASPs) operating in India.

While the budget introduces minor steps toward regulatory clarity, the Web3 and crypto industries continue to seek comprehensive reforms, including lower tax rates and well-defined regulations to foster innovation and investment in India’s growing digital asset ecosystem.