Currently, the changing views of India over cryptocurrency regulation are bound to have an incredible impact on the global crypto ecosystem that led to the optimism expressed by Binance that by the year 2025, India will turn out as a leader in the legislation of crypto. Vishal Sacheendran, the head of Regional Markets at Binance, said that transparency in the regulatory frameworks promotes growth and trust in the sector.
India’s Growing Influence on Cryptocurrency Regulation
Sacheendran’s optimism reflects the increasing global attention on India’s regulatory approach. In his view, India’s leadership could set a benchmark for other nations. As he stated:
“We are hopeful that in 2025, India will take the lead in forming progressive and comprehensive crypto regulations.”
India’s leadership potential stems from its ability to balance innovation with regulatory oversight, particularly as crypto adoption accelerates and institutional interest grows globally.
Key Developments in 2024 Driving India’s Role
- Approval of Spot ETFs: The debut of Bitcoin and Ether spot exchange-traded funds (ETFs) in the U.S. was a pivotal moment for global crypto markets. Sacheendran noted this development showcased the industry’s resilience and emphasized the need for countries like India to embrace robust regulatory frameworks.
- India’s G20 Presidency: During its 2023 G20 presidency, India called for global cooperation on crypto regulations, aligning with international frameworks like the Financial Action Task Force (FATF).
- Multi-Regulator Model Proposal: In 2024, the Securities and Exchange Board of India (SEBI) proposed a shared oversight model, moving away from the Reserve Bank of India’s (RBI) earlier approach of exclusive control.
Binance’s Commitment to India
Binance’s specific embrace of regulations has mainly been on modifying its operations according to the incoming laws of India, making itself as an entity that abides by the regulations as it has registered with FIU (Financial Intelligence Unit) and ensuring compliance with the Anti-Money Laundering norms. Sacheendran has pinpointed the following as part of focus in Binance services for 2025:
- Build trust- Gain trust from the community and cooperation with authorities.
- Utility of blockchain-Strengthening solutions in the blockchain space to address real-world needs.
- Knowledge Creating awareness within the cryptographic ecosystem.
India’s Regulatory Journey
India’s approach to cryptocurrency regulation has seen significant evolution since 2019, when a draft bill proposed banning cryptocurrencies outright. Over time, the stance softened, leading to regulatory milestones:
- Taxation: India introduced a 30% tax on crypto profits, with a 1% tax deducted at source (TDS) on transactions.
- Compliance: Exchanges were required to register with the FIU and adhere to anti-money laundering norms.
Binance faced a $2.25 million fine in 2024, reflecting India’s increasingly stringent enforcement measures.
Looking Ahead to 2025
As India navigates its regulatory path, its decisions could influence global crypto adoption and stability. By fostering innovation while ensuring security and compliance, India has the potential to shape a decentralized and inclusive digital ecosystem.
With Binance and other industry leaders actively engaging with Indian authorities, 2025 could be a pivotal year for India to establish itself as a regulatory leader, setting the stage for global crypto governance.
