CoinSwitch, Mudrex and WazirX see sustained Indian crypto participation despite steep taxes

India recorded Rs 1.10 lakh crore in virtual digital asset transactions from FY23 to FY25. CoinSwitch, Mudrex and WazirX point to continued investor participation despite a 30% tax, 1% TDS and unresolved regulatory framework.

By ·Devil's-advocate pass

Source published First seen Source Business Today · Latest

The development

India recorded Rs 1,09,580 crore in Virtual Digital Asset transactions from FY23 to FY25, while CoinSwitch, Mudrex and WazirX highlighted sustained crypto adoption amid a 30% tax, 1% TDS and pending regulation.

The numbers

  • 50
  • 70 million
  • 90 million
  • Rs 1,09,580 crore
  • FY23 to FY25
  • 131%
  • 18-45
  • 20-30
  • 25–45
  • H12026
  • 82%
  • 34-year-old
  • Q2 2026
  • 54.4%
  • 18–25
  • 12.9%
  • 12.4%
  • 2022-23
  • 30%
  • 1%
  • 90-95%
  • 73%
  • FY25
  • 18%
  • 2027
  • 15
  • $80,000
  • $81,235
  • August 25

Why it matters to operators and investors

CoinSwitch, Mudrex and WazirX demonstrate that India remains a strategically relevant crypto market, but partnership or acquisition plans should account for policy-driven volume volatility.

What to watch next

  • Union Budget changes to the 1% TDS rate, 30% tax treatment, or loss-offset rules for virtual digital assets.
  • RBI, SEBI, FIU-IND or Finance Ministry announcements defining licensing, custody, advertising or consumer-protection requirements.
  • Domestic exchange trading-volume trends versus offshore platform usage and INR-to-stablecoin flows.
  • Growth in SIP-style crypto investments, tax-reporting usage and long-term customer balances versus intraday turnover.
  • Security incidents, withdrawal disruptions or enforcement actions involving major Indian or offshore platforms.
  • Bank and payment-rail willingness to support compliant crypto on-ramps and off-ramps.
  • Prioritize tax-calculation, TDS reconciliation and annual reporting features to reduce investor friction.
  • Build recurring-buy, diversified basket and long-horizon investment products rather than relying on transaction-frequency revenue.
  • Increase proof-of-reserves, custody safeguards, cybersecurity communication and grievance-resolution standards to rebuild trust after sector disruptions.
  • Pursue partnerships with fintechs, payment providers and wealth platforms for compliant customer acquisition.
  • Prepare licensing, KYC/AML and transaction-monitoring capabilities for a potential formal virtual-digital-asset regulatory regime.

The counter-case

The Rs 1.10 lakh crore figure may reflect gross transaction turnover rather than durable net investment demand, and a small set of active traders can generate substantial repeat volume. A 30% tax on gains, no loss set-off and 1% TDS may be driving activity offshore or into smaller, less visible channels rather than proving platform health. Continued participation despite punitive taxes could also be speculative behavior, not evidence of sustainable retail adoption or viable unit economics for Indian exchanges.