Budget 2026: India's Crypto Future Demands Urgent Tax & Regulation Reforms

• India's 1% TDS and 30% capital gains tax on VDAs led to a mass exodus of users to unregulated offshore crypto platforms.
• Government lost an estimated Rs 2,500-5,000 crore in uncollected taxes, with Rs 6,000 crore already lost due to current policies.
• Offshore migration facilitates money laundering, compromises national security, and drives Indian Web3 talent to Dubai, Singapore, and the US.
• Despite having the largest grassroots crypto adoption and 1,000+ Web3 startups, restrictive taxes hinder India's global Web3 leadership.
• Budget 2026 must reduce TDS to 0.01%, align capital gains tax with income slabs, and allow loss offsetting for Web3 ventures to bring users back to regulated platforms.

Why It Matters: Budget 2026 must reform crypto taxes and regulations to retain talent, boost innovation, and secure India's Web3 future.