Union Budget 2026: Still No Relief for India’s 90M Crypto Investors

Union Budget 2026 has once again passed without any reference to cryptocurrency, extending India’s long-standing silence on crypto regulation. There was no mention of digital assets, no indication of a regulatory framework, and no change to the existing tax structure introduced in 2022.

The 30% tax on crypto gains and the 1% TDS on every transaction continue for the fourth straight year. Since their introduction, these measures were expected to act as interim steps until clearer rules were put in place. Budget 2026 indicates that this transition has yet to occur.

Crypto remains taxed, but not recognised.

Four years since the crypto tax, still no policy framework

When crypto taxation was announced in 2022, the government indicated that regulation would follow. That framework is still missing.

Budget 2026 does not explain how crypto is treated under Indian law. It is still unclear whether it is considered an asset, a security, or a speculative instrument. The budget also does not mention investor protection, exchange licensing, or the place of crypto in the wider financial system.

This continued silence reinforces the impression that crypto is being treated more like gambling than as a financial or technology-based asset.

India leads global crypto adoption despite policy silence

India remains a global leader in crypto adoption, with more than 90 million users as of 2024. The country has the largest crypto user base in the world, mainly driven by retail investors, a young population, and widespread access to mobile trading apps.

In November 2025, India became the world’s second-largest holder of Bitcoin, with retail investors holding nearly $120 billion worth of the asset. This placed the country just behind the United States in terms of retail Bitcoin holdings.

Despite the scale of adoption and capital involved, crypto does not find any mention in the country’s most important fiscal policy document.

Crackdowns increase even as regulation remains absent

Even as crypto remains outside budget discussions, regulatory action around the sector has picked up.

Earlier this year, the Financial Intelligence Unit (FIU) tightened the screws on crypto platforms by pushing stricter KYC compliance norms. Exchanges were asked to strengthen verification and reporting processes, adding regulatory pressure without offering legal clarity.

From April 2026, authorities will also be able to track crypto-related emails and social media activity, expanding oversight of digital asset discussions and transactions.

The focus, for now, appears to be on monitoring and enforcement rather than putting a formal regulatory framework in place.

Stablecoin signals and digital rupee add to confusion

The silence in Budget 2026 stands in contrast to recent government statements on digital assets.

In October, Finance Minister Nirmala Sitharaman urged nations to prepare for stablecoins, recognising their growing role in global finance and cross-border payments. Around the same period, the government reiterated its plans to expand the RBI-backed digital currency.

But Union Budget 2026 stays silent on where private cryptocurrencies fit into this wider plan. There is still no clarity on whether India intends to introduce a sovereign stablecoin or how it would work alongside crypto assets already used by millions of Indians.

Taxed, tracked but still ignored

The continued exclusion of crypto from the Union Budget 2026 reflects the gap between how widely crypto is used in India and how it is dealt with at the policy level.

Crypto in India continues to be heavily taxed and closely monitored, but it still functions without a clear regulatory framework. With millions of users and substantial retail money already involved, the lack of direction raises a basic question: how long can the government continue to delay taking a clear policy call?

As the Union Budget 2026 ends without addressing crypto once again, that question remains unanswered. Why does a country that leads global crypto adoption continue to avoid spelling out crypto’s place in its financial system?