2026-01-12 10:32:09

India's aggressive crypto taxation strategy is backfiring spectacularly.

The government's 30% flat tax rate combined with 1% TDS (Tax Deducted at Source) aimed to boost revenue, but it's doing the opposite — pushing traders toward offshore platforms instead.

Just look at the numbers. Between October 2024 and October 2025, Indians shifted ₹4.87 lakh crore in trading volume to overseas exchanges. That's an 85% surge.

Instead of capturing tax income from regulated domestic platforms, New Delhi is essentially driving the entire ecosystem underground. Users find workarounds, offshore exchanges gain market share, and local platforms bleed liquidity.

It's a textbook policy failure. When tax rates get too punitive, people don't comply—they exit. The intended outcome (more revenue) achieved the exact opposite.

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BlockchainGriller

· 01-15 09:29

Haha, this is hilarious. The Indian government really shot itself in the foot this time. Who can accept a 30% tax rate... --- Once again, a textbook-level policy failure. Greed is never satisfied; it's like a snake swallowing an elephant. --- ₹4.87 trillion flowing overseas... Just looking at this number, you can tell how outrageous it is. The local platforms must be extremely quiet now. --- The tax enforcement methods are too harsh, pushing everyone underground. Truly, cleverness can backfire. --- Basically, they've forced all compliant businesses to become illegal. The decision-makers probably never thought about the consequences. --- Damn, isn't this a classic case of "killing the goose that lays the golden eggs"? They could have collected taxes long-term but instead made themselves stingy. --- Offshore trading volume surged by 85%... Is the government trying to promote overseas exchanges?

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LootboxPhobia

· 01-15 03:54

This is a typical case of "killing the goose to get the eggs"... Does the Indian government really not understand? With such harsh tax rates, it will only push people to go abroad. 4.87 trillion rupees, it's outrageous.

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TokenToaster

· 01-12 11:02

Laughing out loud, the Indian government really dug its own grave with this move... a 30% tax rate, which directly pushes people overseas.

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ForeverBuyingDips

· 01-12 10:46

Haha, the Indian government's move is really brilliant—shooting themselves in the foot. The 30% tax rate has directly driven people to overseas exchanges.

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POAPlectionist

· 01-12 10:41

A 30% tax rate is really brutal; this isn't just harvesting leek vegetables, it's cutting the root... No wonder everyone is moving overseas.

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NftRegretMachine

· 01-12 10:38

This is a classic case of "the more you regulate, the messier it gets"... The Indian government's recent move is truly incredible. Instead of cutting the leeks, they are pushing the entire ecosystem abroad, with 4.87 trillion rupees fleeing the country. Absolutely hilarious.

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WagmiWarrior

· 01-12 10:32

Haha, that's really impressive. The government thought that raising taxes could harvest the leeks, but instead, they scared the entire market away... --- This is a classic case of "killing the goose that lays the golden eggs." Who can withstand a 30% tax rate? --- Whoa, 4.87 trillion has gone overseas? The Indian government's move is really clever; the more they try to make money, the less they actually earn. --- Basically, overly strict regulation pushes people to use gray channels. Smart people are outsmarted by their own cleverness. --- I don't understand why they always try to control with high tax rates. The result is pushing the market underground. --- This move by India is really hard to understand... Instead of regulating, they completely evaporated liquidity. --- A typical policy suicide, forcing oneself into a trap. --- Human nature, when taxes are high, everyone runs away. There's nothing more to say.

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