India FOMO

Pradeep Bhandari, national spokesperson for India’s ruling Bharatiya Janata Party (BJP), is calling the country leaders to finally take Bitcoin seriously.

With more and more countries already racing ahead with their own digital asset strategy and doing it with great success, India is finding itself one of the last countries to jump on the whole crypto bandwagon.

With an unreasonable taxation policy and its whole crypto regulation in a mess, India is finding itself in a very precarious position where if it doesn't make a move soon, it would really be too late for the country.

In an article for India Today, Bhandari expressed that the first step for the country would be to create a sovereign Bitcoin reserve, as it would help the country's economy be more resilient.

Bhandari cited the recent development in the United States as a blueprint for India. In recent months, the American federal government has not only expanded its Bitcoin reserves, it has also authorised Bitcoin as a reserve asset in many of its states.

Another facet of the plan would also be for India to tap its rapidly expanding renewable energy infrastructure to develop a domestic Bitcoin strategy surrounding clean energy for mining and asset accumulation.

In the article, Bhandari cited the recent success of Bhutan, stating that there are many similarities between India and Bhutan and there are many things India could learn from them.

Bhandari also expressed that this move isn't a reckless pivot; rather its a calculated step towards embracing digital assets legitimacy.

Heavy Taxation Without Proper Regulation

Another grevious issue at hand is India's unkept crypto regulation. While the government has incurred a heavy taxation for crypto transactions, the India's crypto sector at large remains completely unregulated.

For example, under Section 115BBH of the Income Tax Act, profits from the sale of virtual digital assets (VDAs) like Bitcoin and Ether are taxed at a whopping 30% rate.

While purchase costs can be deducted, there are no provisions for other expenses or losses.

Additionally, a 1% Tax Deducted at Source (TDS) applies to all crypto transactions above approximately $115, further complicating liquidity and transaction flows.

This dual approach—high taxes without clear regulatory oversight—has left the Indian crypto market in limbo.

The Case for Regulatory Clarity and Innovation

Piloting a Bitcoin reserve, coupled with a clear regulatory framework, could provide the transparency and oversight needed to foster innovation while protecting investors.

“India stands at a pivotal juncture. A measured Bitcoin strategy—perhaps a reserve pilot—could strengthen economic resilience and project modernity.”

He highlighted the potential for regulatory clarity to unlock India’s full potential in the digital asset space, enabling responsible innovation and safeguarding a growing class of investors.

As global trends continue to favor crypto integration, Bhandari’s proposal underscores the urgency for India to act decisively and strategically.