How are governments regulating blockchain and crypto in 2025?

GIRAFFE MARKETS | 2025-04-21 19:59

Abstract：🇮🇳 India: Strengthening Oversight, Awaiting Comprehensive LegislationIndia continues to tighten its crypto oversight through taxation and reporting mandates, even as comprehensive legislation remain

🇮🇳 India: Strengthening Oversight, Awaiting Comprehensive Legislation

India continues to tighten its crypto oversight through taxation and reporting mandates, even as comprehensive legislation remains pending.

Taxation Measures: The government maintains a 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on transactions. Additionally, virtual digital assets (VDAs) are now included in undisclosed income during tax searches, potentially attracting higher tax rates .panasiabiz.com+3The Times of India+3ETBFSI.com+3
Reporting Requirements: New compliance rules under Section 285BAA of the Income-tax Act will take effect from April 2026, mandating specified entities to furnish detailed transaction information .ETBFSI.com
Legislative Outlook: A dedicated crypto bill is unlikely before mid-2025. The proposed legislation aims to classify crypto as an asset, prohibit its use for payments, and establish a framework for Web3 applications, ensuring compliance with Indian laws .panasiabiz.com+1IcoHolder+1

🇺🇸 United States: Embracing Deregulation and Strategic Reserves

Under President Donald Trump's administration, the U.S. has adopted a pro-crypto stance, emphasizing deregulation and strategic asset accumulation.The Guardian

Executive Actions: Executive Order 14178 prohibits the establishment of a Central Bank Digital Currency (CBDC) and initiates the development of a federal regulatory framework for digital assets .Wikipedia
Strategic Reserves: The U.S. has established a Strategic Bitcoin Reserve and a Digital Asset Stockpile, incorporating cryptocurrencies like Bitcoin, Ethereum, Solana, Cardano, and Ripple. This move positions the U.S. as a significant state holder of Bitcoin, with holdings estimated at around 200,000 BTC .Wikipedia
Legislative Developments: The Financial Innovation and Technology for the 21st Century Act (FIT21) passed the House in May 2024, delineating regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for digital assets .Wikipedia

🇪🇺 European Union: Implementing Comprehensive Regulatios

The EU has advanced its regulatory framework with the Markets in Crypto-Assets (MiCA) regulation.Wikipedia

MiCA Implementation: As of December 30, 2024, MiCA covers a broad range of crypto-assets and service providers. The regulation excludes certain crypto-assets classified as financial instruments and unique, non-fungible assets. Guidance from the European Securities and Markets Authority (ESMA) allows service providers to continue operations for non-compliant assets until March 2025 .