Bangalore is India's tech and crypto startup hub. Federal regulation applies (30% flat tax on crypto gains, 1% TDS). Major exchanges WazirX and CoinDCX headquartered here.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | south asia |
| Currency | INR |
| Capital Gains (Personal) | 30% flat + 4% cess |
| Capital Gains (Corporate) | 30% flat + surcharge |
| VAT on Crypto | — |
| Staking Tax | No specific guidance |
| Airdrop Tax | No specific guidance |
No crypto-specific tax guidance available.
| Required | Yes |
| Regulator | RBI / SEBI / FIU-IND |
| Framework | Finance Act 2022 (VDA tax framework, Sections 115BBH and 194S of Income Tax Act) + PMLA VASP Notification (March 7, 2023) + FIU-IND AML/CFT Guidelines for VDA Service Providers (January 8, 2026) |
Enforcement focused on unlicensed operators and consumer protection
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | regular_follow_up |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: Unclear
No specific DeFi regulation
Status: no_rules
No specific stablecoin framework
Status: no_rules
No specific NFT regulation
| Legal | Yes |
| Electricity Cost | $0.08/kWh |
| Renewable Energy | 20% |
| Infrastructure | good |
Karnataka, especially Bangalore, has good data center infrastructure and moderate electricity costs. Mining is legal with no special restrictions.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 40/100 |
| Banking Access | moderate |
Risk Factors
India remains politically stable with moderate corruption and improving ease of doing business. Crypto companies face moderate banking access and some regulatory uncertainty.
Bangalore is India's tech and crypto startup hub. Federal regulation applies (30% flat tax on crypto gains, 1% TDS). Major exchanges WazirX and CoinDCX headquartered here.
Karnataka (Bangalore) is classified by FATF as: regular_follow_up.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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VASP licensing, jurisdiction analysis, AML/KYC, legal opinions, company registration and banking access.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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