Unfair tax regime, policy lacks: Mudrex reports India’s crypto woes

Mudrex, one of India’s leading crypto investment platforms, today released its latest survey, “What India Thinks: Crypto Regulation, Taxation & Investment Trends.” Drawing responses from over 9,000 participants across age groups, income levels, professions, and regions, the study captures investor views on regulation, taxation, motivations, deterrents, trust in authorities, political opinions, and sources of crypto knowledge.

India has led the world in crypto adoption for three consecutive years, according to industry reports. This rapid growth highlights both the immense opportunity and the pressing need for regulatory clarity.

Against this backdrop, the survey found 93 percent of respondents support crypto regulation, underscoring strong demand for a structured framework. Of these, 56 percent called for comprehensive rules, 24 percent preferred lighter oversight, and 13 percent sought regulation limited to taxation. 50 percent of respondents expressed support for a dedicated crypto regulator.

Commenting on the findings, Edul Patel, CEO and Co-founder of Mudrex, said, “India is already at the forefront of global crypto adoption and has the talent, appetite, and scale to shape the digital asset economy. But to get there, regulation must evolve into clarity. The survey shows that investors are not against rules; they’re against uncertainty. Clear regulation will give investors the confidence to participate. Treating digital assets on par with other asset classes will encourage more participation, prevent capital flight, and establish India as a credible hub for digital finance.”

Taxation emerged as a major pain point, with 84 percent of respondents calling current crypto taxes unfair compared to other asset classes. The 30 percent tax on gains was cited by two-thirds as the biggest deterrent, followed by the inability to offset losses (12 percent), fraudulent activities (12 percent), one percent TDS (7 percent), and exchange fees (3 percent).

Policy clarity could significantly boost adoption: nearly nine in ten investors said they would increase their crypto investments if government policies became clearer. Of these, 55 percent strongly agreed, while 35% said they would invest more if taxes were reduced.

The findings also indicate a maturing investor mindset. Two-thirds of investors (64 percent) view it as long-term wealth creation, while curiosity (14 percent), short-term returns (12 percent), and inflation hedging (6 percent) drive smaller segments. Just 4 percent remain still on the fence.

When it comes to information sources, YouTube leads with 43 percent of investors relying on it for crypto knowledge, followed by news media (19 percent), friends and family (15 percent), and social platforms like X (14 percent).

On education, 77 percent of respondents want crypto and blockchain included in Indian college curricula, while 12 percent believe this should wait until adoption becomes more mainstream. The study also reveals that 78 percent of respondents believe India is late in embracing crypto and Web3, while only 12 percent support the government’s cautious approach.

Importantly, crypto’s political relevance is rising: 67 percent said they are very likely to vote for a party that supports crypto, while 24 percent are somewhat likely. Only 9 percent said crypto policy would not influence their vote. The timing of this survey is significant, with the government currently drafting a discussion paper on crypto regulation. By reflecting the expectations of India’s investor base, these findings provide policymakers with a clear mandate for action.