Union Budget 2026: India’s Crypto Investors Left in the Dark Again!

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Key Highlights

  • The Union Budget of 2026, in its usual fashion, has chosen to ignore the existence of private cryptocurrencies; the 30% tax and 1% TDS continue to loom like an unwelcome guest at a wedding.
  • With over 90 million crypto enthusiasts holding a staggering $120 billion in Bitcoin, one might expect a shout-out from the government. Alas, regulatory clarity remains as elusive as a cat in a room full of rocking chairs.
  • While the government is busy dreaming up plans for the RBI digital rupee and stablecoins, it appears that private crypto regulation is still on a long vacation, perhaps somewhere sunny.

Once more, the Union Budget 2026 has passed without so much as a nod towards cryptocurrency, extending India’s proud tradition of silence on this pressing issue. Not a whisper about digital assets, nor a hint of a regulatory framework, and the existing taxation structure introduced back in 2022 remains steadfast, like an old statue that no one dares to move.

The persistent 30% tax on crypto gains and the 1% TDS clings on like a stubborn stain for the fourth consecutive year. Initially, these measures were heralded as temporary stopgaps while clearer rules awaited their cue. However, the Budget of 2026 suggests that this transition has yet to make an appearance.

Crypto remains taxed, but not recognised.

Four years since the crypto tax was imposed, we are still awaiting any semblance of a policy framework.

When the taxes were introduced in 2022, the government promised that regulation would follow with great fanfare. Yet here we stand, still waiting for the curtain to rise on that elusive regulatory play.

The Budget 2026 does not clarify how crypto is perceived under the Indian law – is it an asset, a security, or merely a speculative whimsy? Investor protection, exchange licensing, and the place of crypto in the grand financial narrative are all left to the imagination.

This ongoing silence seems to suggest that the authorities view crypto more akin to gambling than a legitimate financial instrument, which is quite the juxtaposition given its popularity.

India leads global crypto adoption despite policy silence

Despite the government’s reticence, India remains a titan in the realm of crypto adoption, boasting over 90 million users as of 2024. Yes, you heard it right-the nation proudly stands as home to the largest crypto user base globally, driven by spirited retail investors, a dynamic young populace, and an abundance of mobile trading apps.

In November 2025, India ascended to the lofty title of the world’s second-largest holder of Bitcoin, with retail investors clutching nearly $120 billion worth of this prized digital asset-just a step behind the United States in the Bitcoin hierarchy.

Yet, despite the sheer magnitude of adoption and capital at stake, crypto is conspicuously absent from the nation’s most consequential fiscal blueprint.

Crackdowns increase even as regulation remains absent

While crypto continues to be a ghost in budget discussions, regulatory actions surrounding the sector have picked up pace, reminiscent of a slow-moving train gaining momentum.

Earlier this year, the Financial Intelligence Unit (FIU) cranked up the pressure on crypto platforms, insisting on stricter KYC compliance norms. Exchanges have been compelled to enhance verification and reporting processes, adding to an already heavy burden without providing any legal clarity. How delightful!

Starting April 2026, authorities will also have the ability to track crypto-related emails and social media exchanges, expanding their watchful gaze over digital asset dialogues and transactions.

The current focus appears to be on monitoring and enforcement, rather than establishing a formal regulatory framework-a rather curious approach indeed.

Stablecoin signals and digital rupee add to confusion

The deafening silence of Budget 2026 starkly contrasts with the recent proclamations of the government regarding digital assets.

In October, Finance Minister Nirmala Sitharaman called upon nations to prepare for stablecoins, recognizing their burgeoning role in global finance. Around the same time, plans to expand the RBI-backed digital currency were reiterated with great enthusiasm.

Yet, the Union Budget 2026 neglects to clarify how private cryptocurrencies fit into this ambitious narrative. There remains an air of mystery surrounding whether India aims to introduce a sovereign stablecoin or how it would coexist alongside the crypto assets so eagerly embraced by millions.

Taxed, tracked but still ignored

The ongoing exclusion of crypto from the Union Budget 2026 highlights the glaring chasm between the widespread adoption of crypto in India and the lack of coherent policy addressing it.

Crypto in India continues to endure heavy taxation and meticulous scrutiny, yet it persists in operating without a clear regulatory framework. With millions of users and significant retail investment at play, one must ponder how long the government can postpone a decisive policy stance.

As the curtain falls on the Union Budget 2026, leaving crypto once again unaddressed, that pressing inquiry lingers in the air: why does a nation at the forefront of global crypto adoption continue to sidestep articulating crypto’s rightful place within its financial landscape?

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2026-02-01 10:49