"This rate is typically used to tax activities that are not considered economically productive, such as lottery," he said. "So this could be an indication that the government wants to make revenue, but it does not see crypto trading as economically productive."

For equities, India applies a 15% short-term capital gains tax if shares are sold in less than a year, and 10% if sold after a year.

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Gupta hopes that the government makes up its mind soon. India, with its vast pool of developers and enthusiastic young population, could be a "superpower in the next five to 10 years," in cryptocurrency and blockchain industry, he said.

"What is missing right now is a clear regulatory framework," he added.

"This rate is typically used to tax activities that are not considered economically productive, such as lottery," he said. "So this could be an indication that the government wants to make revenue, but it does not see crypto trading as economically productive."

For equities, India applies a 15% short-term capital gains tax if shares are sold in less than a year, and 10% if sold after a year.

*

Gupta hopes that the government makes up its mind soon. India, with its vast pool of developers and enthusiastic young population, could be a "superpower in the next five to 10 years," in cryptocurrency and blockchain industry, he said.

"What is missing right now is a clear regulatory framework," he added.