Reliance Industries, led by CEO Mukesh Ambani, is poised to enter the crypto market with JioCoin. Since Polygon Labs, their Web3 partner, announced the partnership on January 15, 2025, anticipation has surged on social media. Despite this excitement, no official announcements have been made regarding any crypto products.

What is JioCoin?

JioCoin is reportedly designed as a rewards-based token on Ethereum’s layer 2 blockchain, allowing users to earn tokens by engaging with Jio’s services.

Reaction from the Industry

Sandeep Nailwal from Polygon praised this direction for web3 integration in India, noting its potential impact on digital token adoption overall.

Quote: “Reliance Jio’s @JioBrowser already incentivizes users for their internet usage.” Translation: Reliance Jio’s browser offers rewards for browsing activities.

How it Works

Users can earn JioCoins while browsing through Jio’s services, which could significantly enhance crypto engagement in India. Given that Jio has over 450 million users, this initiative could catalyze mainstream cryptocurrency adoption in the country.

The reward tokens will be stored in users’ Polygon wallets, their value depending on user interaction levels. Eventually, this move may inspire other large enterprises to create their own digital tokens.

Regulatory Environment

While optimism surrounds JioCoin, regulatory challenges remain. Recent reports indicate that many Indian users are turning to international platforms to escape high domestic taxes. Currently, India imposes a 1% TDS (Tax Deducted at Source) on transactions exceeding INR 50,000, along with a 30% tax on gains from cryptocurrency trading.

The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are expected to closely scrutinize JioCoin’s classification.

India’s forthcoming budget is anticipated to maintain the current tax strategies affecting cryptocurrency adoption, indicating little room for immediate regulatory easing.