India and Thailand Lobbies Crypto Industry Policies on Tax Cuts and Payments Amid US-Led Crypto Regulatory Wave

The cryptocurrency markets in South and Southeast Asia are undergoing significant transformations as governments and industries in the region take steps to embrace and regulate digital assets. India is lobbying for tax reductions to revive its crypto market, while Thailand is advancing plans to modernize its financial system by introducing crypto-linked credit cards and merging legislation for traditional and digital assets.

India’s Crypto Industry Pushes for Tax Cuts Amid Market Growth Potential

India's cryptocurrency industry is actively lobbying the government to reduce the steep 30% tax on crypto gains and the 1% Tax Deducted at Source (TDS) on every trade. These taxes, introduced in 2022, caused a massive 90% drop in trading volumes within the country and led to an exodus of traders and capital to more crypto-friendly jurisdictions such as Dubai and Singapore.

Despite these challenges, India's cryptocurrency market shows immense potential. By 2025, it is projected to generate $6.4 billion in revenue, supported by an estimated 107.3 million users. The market is expected to grow at a compound annual growth rate (CAGR) of 18.48% from 2025 to 2033, reaching $13.9 billion by 2033.

Indian crypto companies are now engaging with policymakers more frequently, reflecting a softening stance by the government. The industry is pushing for a reduction in the transaction tax to 0.1%, arguing that it would ensure traceability without stifling market growth. If successful, this could potentially revive the $15 billion market that was nearly destroyed by the high taxation.

The world’s two largest crypto exchanges, Binance and Coinbase, which had left the country, have re-entered. They are trying to get a piece of a crypto market in the world’s most populous nation that is expected to grow to more than $15bn in 2035 from $2.5bn last year, according to estimates by accountancy firm Grant Thornton.

Thailand Embraces Crypto with Credit Cards and Legal Reforms

Thailand is taking a proactive approach to integrate cryptocurrency into its economy. The government has announced plans to allow tourists to spend crypto via credit card-linked platforms. The initiative, unveiled by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, is part of a broader strategy to modernize Thailand’s financial system and embrace digital assets.

Under the proposed system, tourists will link their crypto holdings to credit cards for local purchases, with merchants receiving payments in Thai baht. This method aims to streamline transactions for visitors while minimizing risks to the local currency.

Thailand's cryptocurrency market is projected to reach $498.6 million in revenue by 2025, with a steady annual growth rate. Additionally, Bitkub, Thailand's largest crypto exchange, holds a 77% market share, signifying the growing adoption of digital assets in the country.

In addition to enabling crypto-linked spending, Thailand is planning to reform its financial laws to unify the treatment of traditional capital markets and the digital asset space. This includes introducing new digital investment tools like the G-Token, which will offer fractional access to government bonds and other investments.

The Road Ahead: Crypto as a Catalyst for Economic Transformation

The efforts by India and Thailand highlight the growing importance of digital assets in the global financial ecosystem. While India focuses on reviving its domestic market through tax reforms, Thailand is positioning itself as a crypto-friendly destination for tourists and investors. Both countries aim to adapt to the evolving landscape of cryptocurrency while fostering economic growth and innovation. As these nations take steps to redefine their digital economies, they set a precedent for other emerging markets to follow.