Indian crypto exchanges urge tax review ahead of February budget
India’s leading crypto exchanges are asking the government to reassess tighter tax and compliance rules ahead of the February budget, saying the measures have hit trading volumes and liquidity. Industry groups point specifically to transaction-level levies and new limits on offsetting losses against gains, arguing these policies raise costs for traders and deter participation from retail and professional market-makers alike. If regulators do not act, exchanges warn the domestic market could see reduced depth, wider spreads and lower foreign investment at a time when global crypto centers are competing for volume. The appeal frames the tax review as necessary to preserve market functioning and investor confidence, not to seek tax exemptions, and urges policymakers to balance revenue targets with measures that keep liquidity and orderly price discovery intact.