Is crypto legal in India?
Cryptocurrency is legal in India, but subject to regulatory restrictions.
Southern Asia · IN · 8 of 9 dimensions sourced
India crypto policy at a glance
Stage of the central bank digital currency programme — research, pilot, or launched.
Whether crypto is legal, restricted, or banned for individuals and businesses.
“banks should continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT)”
Whether the jurisdiction licenses crypto/VASP service providers.
“Registration of Virtual Digital Asset Service Providers in FIU-IND as Reporting Entity.”
Rules governing stablecoin and e-money-token issuance.
“The Reserve Bank of India reiterates that it has not issued any framework for the regulation or issuance of stablecoins or other crypto-assets and that such instruments are not legal tender in India.”
How crypto gains are taxed and reported, including OECD CARF participation.
“Gains from Virtual Digital Assets are subject to a 30% tax (along with applicable surcharge and 4% cess) under Section 115BBH.”
How decentralized finance (DeFi) is treated by regulators.
“The emergence of decentralized finance (DeFi) using permissionless blockchains… could pose new risks to financial stability… The Reserve Bank is closely monitoring these developments and assessing appropriate regulatory responses.”
Whether NFTs are addressed in regulation.
“For the purposes of clause (47A) of section 2 of the Act, ‘virtual digital asset’ shall include a non-fungible token or any other token of similar nature.”
Policy toward crypto mining — permitted, restricted, or banned.
Intensity of regulatory enforcement actions against crypto firms.
“SEBI’s enforcement orders database contains occasional actions that refer to unregistered investment schemes involving crypto or virtual currencies.”
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