India’s current crypto tax regime, which includes a 30% tax on digital asset gains, a 1% Tax Deducted at Source (TDS), and no allowance for loss set-offs, has driven most trading activity offshore. Approximately three-quarters of Indian crypto volume, roughly $6.1 billion, now occurs on foreign platforms, resulting in lost tax revenues and regulatory oversight. Domestic industry stakeholders seek reforms in the 2026 Union Budget, calling for tax rationalization (lowering the TDS rate, permitting loss offsets), clear regulatory frameworks, and promotion of blockchain adoption. A nationwide survey shows deep dissatisfaction: 66% of participants call the tax regime unfair and a majority have reduced crypto participation. Critics argue the current structure has failed both to track transactions and deter speculation, instead incentivizing migration offshore and increasing the compliance burden on users of domestic platforms. Calls for change include aligning crypto taxation with equities, reducing TDS, using information-based reporting rather than transactional withholding, and creating consumer-protective regulation. Without reforms, India risks being left as a passive consumer of crypto innovation while losing industry, talent, and tax revenue to more progressive jurisdictions in Asia.