88% of crypto investors know tax rules, 63% call them unfair: CoinSwitch

Nearly 88 per cent of crypto investors in India are aware of the country’s crypto tax regime, but over 63 per cent consider it unfair, according to a nationwide survey by CoinSwitch. 

 

The survey, conducted ahead of the 2026 Union Budget, gathered insights from close to 5,000 respondents, highlighting widespread discontent over the current taxation framework and a clear demand for a more predictable, market-aligned tax structure.

Discussions gain traction ahead of 2026 Union Budget

As India gears up for the February 2026 Union Budget, discussions surrounding the taxation and regulation of Virtual Digital Assets (VDAs) are gaining traction. Over the past few years, India has adopted a cautious yet structured approach to the crypto space, rolling out a defined tax framework and bolstering compliance and reporting requirements. However, as the ecosystem matures and participation broadens, understanding how these policies are perceived by market participants is becoming crucial to crafting balanced and informed regulations.

Awareness of tax regime but dissatisfaction with fairness

The CoinSwitch survey reveals that while nearly 88 per cent of respondents are aware of the country’s crypto tax regime, a significant 63 per cent perceive the framework as unfair. Additionally, 59 per cent of investors reported reduced participation in crypto investing or trading due to the tax structure.  “This suggests that the current regime is possibly discouraging onshore participation, potentially pushing trading activity towards offshore markets,” the survey noted.  ALSO READ | Q3 Results Today

Calls for reform in crypto taxation

The findings also underscore a clear demand for reform in the taxation framework for crypto traders. Over 80 per cent of respondents are calling for changes in the upcoming Union Budget, with most urging a rationalisation of the current tax system rather than a complete rollback. Among the top expectations are lower tax rates and provisions allowing for loss set-off, the survey revealed.

Majority favour taxing crypto like other financial assets

Furthermore, a majority of respondents favour taxing crypto in line with other financial assets like equities or mutual funds. “This points to a broader desire to integrate crypto into India’s existing financial and tax systems, rather than treating it as an exceptional or isolated asset class,” the report said.

 

Beyond taxation, the survey also highlighted concerns over the regulatory landscape for digital assets. Nearly 80 per cent of respondents emphasised the need for clear and comprehensive regulations that go beyond tax policies, noting that taxation alone will not be sufficient to build long-term confidence and participation in the sector.

 

More than half of the respondents believe crypto should be promoted as a new asset class, albeit with appropriate safeguards. Support for outright discouragement of crypto remains limited, suggesting that public sentiment is largely in favour of enabling the sector, provided it is properly regulated.