I think it's more of their government trying to discourage their population to not used crypto at all that's why the high tax. And then a couple of news about their local exchanges being hacked? The image of crypto is not good in India.
Japan is one of the highest if not the highest crypto taxes so far. Yes, they have adopted it many years ago, but at the same time, it also reflect how their government is very strict on it as compare to other countries wherein there are exemptions when you hold crypto for long term at least > one year.
My nation also charges a high level of tax too, same amount nearly, so it is not really that shocking that the whole world is seeing this as something that is a good way to make more money for the governments. Governments always need more taxes, because that is how they are run, they use that money, and if they can tax more then they will tax more. That is the critical reason why crypto profits are taxed this high.
I have seen as high as 50% on the profit, so basically government is partnering up with me on my profits, but not looking at what I lose. So if I make a 100 dollar bet, and make 100 dollars and then lose that 100 dollars, that means I am back to where I started, and yet I have to pay half of that to the nation, makes no sense.