Finance Minister Nirmala Sitharaman addressed the government's position on distributed ledger technology (DLT) and cryptocurrencies during the Budget Round Table 2025 event, clarifying that the government is not opposed to DLT in general. However, she emphasized that the government’s primary concern is ensuring transparency in transactions, particularly with respect to the sources of funds and the individuals involved.
While Sitharaman did not introduce any specific policies related to cryptocurrencies or virtual digital assets (VDAs), she outlined the government’s focus on regulating crypto transactions. She noted that the introduction of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) measures was aimed at bringing some level of accountability to cryptocurrency trading.
Sitharaman also highlighted India's push for a global consensus on cryptocurrency regulations during its G20 presidency. This stance reflects India's broader interest in creating a regulatory framework for crypto markets that can be adopted internationally.
When questioned about how the United States' crypto-friendly stance under President Donald Trump might influence India's approach, Sitharaman responded, “We are not against distributed ledger technology.” However, she reinforced that the government's priority is to manage these transactions responsibly. She also responded directly to the contrast between the US and India’s regulatory approaches, saying, “That’s right, we are India. I will think about India,” emphasizing the country’s unique stance on the issue.
The Union Budget for 2025 did not unveil significant policy changes for cryptocurrencies, but it did propose amendments to the existing laws to enhance reporting requirements for crypto transactions. The government plans to mandate that certain prescribed reporting entities disclose information about transactions involving crypto assets in a prescribed statement. Additionally, the definition of virtual digital assets is expected to be aligned accordingly, marking a step toward clarifying how these assets should be handled under the law.
