Cryptocurrency adoption is soaring globally, with India leading the charge for the third consecutive year. However, a recent survey by Mudrex, a Bengaluru-based crypto investment platform, reveals a strong call for change among investors. An overwhelming 93% of crypto investors want regulation, while 84% find the current tax structure unfair. Additionally, 91% consider crypto policy a key factor in their voting decisions, signaling that digital assets are no longer just a financial trend but a political issue. This article dives into the survey findings, exploring why investors are pushing for regulatory clarity and fairer taxation, and what this means for the future of crypto in India. Mudrex Survey, 2025
The Push for Crypto Regulation
The Mudrex survey, conducted among over 9,000 participants across various professions, age groups, and regions, highlights a near-unanimous demand for regulation. Of the 93% who support regulatory frameworks, 56% advocate for comprehensive rules to ensure investor protection and market stability. Meanwhile, 24% prefer minimal regulation to foster innovation, and 13% want regulations focused solely on taxation. As the survey notes, Indian investors seek a “Goldilocks approach”—a balanced regulatory framework that is neither too restrictive nor too lenient.
This demand comes as India continues to dominate global crypto adoption. Despite its leadership, the absence of a clear policy framework has left investors vulnerable to volatility and fraud. The survey underscores that clear regulations could boost investor confidence, with 90% of respondents stating they would increase their crypto investments if policies were more transparent. Notably, 55% strongly agreed, while 35% said lower taxes would encourage further investment. With the Indian government currently drafting a discussion paper on crypto regulation, these findings provide a clear mandate for policymakers to act.
Taxation: A Major Pain Point
Taxation remains a significant hurdle for Indian crypto investors. The survey reveals that 84% of respondents view the current tax structure as unfair, particularly the flat 30% tax on crypto gains, which offers no allowance for offsetting losses. This policy disproportionately affects younger, lower-value traders, stifling their participation in the market. Additionally, the 1% Tax Deducted at Source (TDS) was cited as a further deterrent, with 66% of respondents pointing to the high tax rate as the biggest obstacle, followed by the inability to offset losses (12%) and concerns about fraudulent activities (12%).
The sentiment is clear: the current tax regime is seen as a barrier to growth. Investors argue that treating digital assets on par with other asset classes, such as stocks or mutual funds, could prevent capital flight and position India as a global hub for digital finance. Edul Patel, CEO of Mudrex, emphasized, “Investors are not against rules; they’re against uncertainty. Clear regulation will give investors the confidence to participate.”
Crypto as a Political Issue
One of the survey’s most striking revelations is the growing political relevance of crypto. A remarkable 91% of respondents said crypto policy influences their voting decisions, with nearly three-quarters of those under 35 stating they are “very likely” to support parties that champion crypto-friendly policies. This trend is particularly strong among urban youth, who view crypto not just as an investment but as a symbol of innovation and global progress. As cryptocurrencies remain unregulated and are not considered legal tender in India, the government’s cautious stance—citing volatility and potential illicit use—has fueled frustration among investors.
Sources of Crypto Knowledge
The survey also sheds light on how Indian investors learn about cryptocurrencies. YouTube leads as the primary source, with 43% of respondents relying on it for crypto knowledge, followed by news media (19%), friends and family (15%), and social platforms like X (14%). Additionally, 77% of respondents support integrating crypto and blockchain education into college curricula, reflecting a desire for formal education to bridge the knowledge gap.
Implications for India’s Crypto Future
India’s position as a global leader in crypto adoption presents both opportunities and challenges. The Mudrex survey highlights that investors are eager for a regulatory framework that balances innovation with protection. Clear policies could unlock greater participation, prevent capital flight to offshore exchanges, and establish India as a credible hub for digital finance. Moreover, addressing the tax concerns—such as revising the 30% flat tax and allowing loss offsets—could make the market more accessible to retail investors.
The survey’s timing is critical, as the Indian government is actively working on crypto regulation. By aligning policies with investor expectations, India could harness its crypto momentum to drive economic growth and innovation. However, failure to act risks stifling the market and pushing investors to jurisdictions with more favorable regulations.
Conclusion
The Mudrex survey paints a vivid picture of Indian crypto investors’ priorities: 93% demand regulation, 84% seek fairer taxes, and 91% view crypto policy as a political priority. These findings signal a pivotal moment for India’s crypto ecosystem. As the government drafts new regulations, policymakers must heed the call for clarity, fairness, and balance to sustain India’s leadership in global crypto adoption. For investors, the message is clear—crypto is not just an asset but a movement that demands structure and support to thrive.
