Cryptocurrency is legal to buy, sell, and hold in India under the Virtual Digital Assets (VDA) classification introduced by the Finance Act 2022. There is no outright ban; rather, India operates a 'regulation through taxation' approach with a 30% flat tax on gains, 1% TDS, mandatory FIU-IND registration for VASPs under PMLA, and AML/KYC obligations. No single comprehensive crypto law exists yet; oversight is shared among RBI (monetary policy), SEBI (securities-like tokens from April 2025), FIU-IND (AML), and CBDT (taxation). A dedicated regulatory framework (possibly the COINS Act) is under discussion for 2026.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | south asia |
| Currency | INR |
| Capital Gains (Personal) | 30% capital gains tax on crypto assets |
| Capital Gains (Corporate) | 30% corporate tax on crypto gains |
| VAT on Crypto | — |
| Staking Tax | Taxed as income |
| Airdrop Tax | Taxed as income |
India taxes crypto capital gains at 30% for individuals and corporations, with staking, mining, and airdrops treated as taxable income. VAT/GST does not apply to crypto transactions.
| Required | Yes |
| Regulator | RBI / SEBI / FIU-IND |
| Framework | Prevention of Money Laundering Act (PMLA) 2002 with VDA Service Provider Notification (2023); Income Tax Act 1961 Section 115BBH (Finance Act 2022); FIU-IND AML/CFT Guidelines for VDA Reporting Entities (January 2026); SEBI oversight of securities-like tokens (from April 2025). No single comprehensive crypto act as of 2026-06-01. |
| Ease | hard |
| Cost (USD) | $50,000 - $200,000 (FIU registration + compliance infrastructure) |
Licensing is required for crypto exchanges and service providers, with stringent KYC and compliance obligations. The framework is still evolving with high regulatory scrutiny.
No detailed enforcement information available
| Status | Pilot |
| Name | Digital Rupee |
| Issuing Authority | RBI |
| Model | hybrid |
| Technology | DLT |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | regular_follow_up |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: Restricted
DeFi platforms face regulatory restrictions and are not formally recognized under current Indian law, with ongoing regulatory scrutiny.
Status: Restricted
Stablecoins are under regulatory restrictions with no formal approval; RBI has expressed concerns over their use and potential risks.
Status: regulated
| Legal | Yes |
| Electricity Cost | $0.082/kWh |
| Renewable Energy | 24% |
| Infrastructure | fair |
Mining is legal but faces restrictions including licensing and compliance requirements. Electricity costs are moderate; infrastructure is developing.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 40/100 |
| Banking Access | restricted |
| Sanctions Program Active | Yes |
Risk Factors
India maintains a cautious regulatory environment with moderate political stability. Crypto businesses face banking restrictions and regulatory uncertainty, though no international sanctions apply.
Recent Political Events
Cryptocurrency is legal to buy, sell, and hold in India under the Virtual Digital Assets (VDA) classification introduced by the Finance Act 2022. There is no outright ban; rather, India operates a 'regulation through taxation' approach with a 30% flat tax on gains, 1% TDS, mandatory FIU-IND registration for VASPs under PMLA, and AML/KYC obligations. No single comprehensive crypto law exists yet; oversight is shared among RBI (monetary policy), SEBI (securities-like tokens from April 2025), FIU-I
India is classified by FATF as: regular_follow_up.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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