Crypto Regulation India: What’s Allowed, Banned, and What You Must Know in 2025

When it comes to crypto regulation India, the Indian government’s approach to digital assets is strict, complex, and constantly shifting. Also known as Indian cryptocurrency rules, it’s not a ban — but it doesn’t feel like permission either. The government doesn’t outlaw owning Bitcoin or Ethereum, but it makes using them feel like walking through a minefield. You can buy, hold, and trade crypto, but the moment you try to cash out, you’re hit with a 30% tax on profits — no deductions, no losses offset. That’s not regulation. That’s a revenue grab with a side of confusion.

Then there’s the non-custodial wallet India, a tool that lets you control your own crypto without relying on exchanges. Also known as self-custody wallets, these are the backbone of real crypto freedom — but India’s rules make them nearly useless. The Financial Intelligence Unit (FIU) demands every wallet user report transactions, even if you’re just holding. No one’s forcing you to register your Ledger or MetaMask, but if you send more than ₹10,000 in a year, you’re legally required to disclose it. Most people don’t. And that’s why banks keep freezing accounts — they’re scared of being fined under FIU compliance, the set of rules forcing crypto platforms to track and report every transaction. Also known as anti-money laundering rules for crypto, it’s why WazirX got slapped with penalties and why Bybit pulled out of India’s banking system.

And let’s not forget the crypto exchanges India, the middlemen that make buying crypto feel easy — until they don’t. Also known as Indian crypto platforms, most of the big names either got banned, hacked, or quietly shut down local services. Binance? No more INR deposits. WazirX? Still operating but under constant scrutiny. Koinde? Too shady to trust. Even the ones that survive are stuck between regulators and users, often turning away Indian customers to avoid fines. What’s left are smaller platforms with weak security and no legal backing — and you’re on your own if something goes wrong.

Here’s the truth: India doesn’t hate crypto. It hates losing control. The tax is a way to monetize the trend. The wallet reporting rules are a way to track you. The exchange crackdowns are a way to push people toward state-backed digital rupees. But if you’re smart, you still have options. You can hold crypto in a non-custodial wallet. You can trade on offshore platforms with VPNs. You can use stablecoins to move value across borders. You just can’t do it without understanding the rules — or ignoring them at your own risk.

Below, you’ll find real, up-to-date guides on what’s actually working in India in 2025 — from which exchanges are still safe to use, to how to avoid getting flagged by tax authorities, to why some wallets are more vulnerable than others. No fluff. No hype. Just what you need to know to protect your crypto in a country that wants you to play by their rules — or not at all.