According to Foresight News, Nischal Shetty, co-founder and president of blockchain company Layer1 and its Shardeum project, has said that India's approach to crypto asset regulation has had mixed results. In an interview at the Messari Mainnet summit, Shetty explained that India imposes a 1% tax deducted at source (TDS) on digital assets, which results in high-frequency traders incurring a proportionate loss each time they sell. This has made high-frequency crypto trading companies rare in India.

Shetty added that the 1% TDS may not necessarily be a bad thing for ordinary retail traders, who might buy and hold tokens for six months to a year. Indian lawmakers have primarily focused on protecting consumers and promoting regulation of businesses such as exchanges.