India Crypto Regulation: What’s Allowed, Banned, and What Comes Next

When it comes to India crypto regulation, the set of laws and policies governing cryptocurrency use, trading, and taxation within India. Also known as Indian cryptocurrency policy, it’s not a ban—it’s a complex mix of control, taxation, and cautious experimentation. Unlike China, which outright banned Bitcoin, India never outlawed crypto. But it didn’t welcome it either. For years, banks refused to serve crypto businesses. The Reserve Bank of India (RBI) pushed back hard, calling crypto a threat to financial stability. Then came the 2020 Supreme Court ruling that overturned the RBI’s banking ban. That’s when things started to change.

Today, crypto taxation India, the 30% tax on crypto gains introduced in 2022, with no loss offset allowed. Also known as crypto income tax, it turned crypto from a gray area into a taxable asset class. If you make money trading Bitcoin or Ethereum, the government wants its cut. And if you lose money? Tough luck—you can’t use those losses to reduce your tax bill on stocks or other income. On top of that, there’s a 1% TDS (tax deducted at source) on every crypto trade over ₹10,000. That means even small swaps get tracked. The goal? Bring crypto into the formal economy, not kill it.

Meanwhile, the digital rupee, India’s central bank digital currency (CBDC) launched by the Reserve Bank of India as a state-controlled alternative to private crypto. Also known as e-Rupee, it’s not a blockchain experiment—it’s a surveillance tool. While you’re paying 30% tax on your Bitcoin profits, the government is quietly rolling out its own digital currency. The digital rupee lets the RBI track every transaction, freeze accounts, and control spending in real time. It’s the opposite of Bitcoin. One is permissionless, anonymous, and decentralized. The other is mandatory, traceable, and fully controlled by the state.

So what’s really happening? India isn’t against crypto—it’s trying to own it. The rules are messy, the taxes are steep, and the digital rupee looms large. But crypto exchanges still operate. Millions still trade. And new platforms keep popping up, often with offshore servers. If you’re in India and holding crypto, you’re not breaking the law. But you’re definitely in a gray zone where the government watches closely, taxes aggressively, and offers zero legal protection.

Below, you’ll find real breakdowns of what’s working, what’s fake, and what’s just a scam hiding behind buzzwords. No fluff. No hype. Just what you need to know to stay safe, avoid scams, and understand where the rules stand today.