India Crypto Regulation: What’s Legal, What’s Not, and How It Affects You

When it comes to India crypto regulation, the legal framework governing cryptocurrency use, trading, and taxation in India. Also known as cryptocurrency laws India, it’s not a ban—it’s a tight leash. The government doesn’t outlaw crypto, but it makes it hard to use without jumping through hoops. Unlike China, where crypto is fully blocked, or Japan, where exchanges are licensed and monitored, India walks a middle path: crypto isn’t illegal, but it’s not officially recognized either.

This ambiguity affects everything. RBI crypto policy, the Reserve Bank of India’s stance on banks serving crypto businesses. Also known as central bank digital currency India, it’s why many banks still refuse to open accounts for crypto traders—even though the Supreme Court overturned the 2018 banking ban in 2020. The RBI still warns about risks, but it hasn’t stopped people from using P2P platforms like WazirX or CoinDCX. Meanwhile, crypto taxes India, the 30% tax on crypto gains and 1% TDS on every trade introduced in 2022. Also known as digital asset taxation India, it’s one of the strictest in the world. You pay tax even if you lose money. And every time you swap one coin for another, the government takes 1% right away.

That’s why most Indian crypto users stick to P2P trading. You buy Bitcoin from someone in Delhi using UPI, and no exchange touches your money. It’s legal, as long as you report the income. But if you use a foreign exchange like Binance without KYC, you’re in a gray zone. The Enforcement Directorate has already frozen assets of several crypto firms for alleged money laundering. The government wants control, not chaos.

What does this mean for you? If you’re holding crypto, you’re already taxed. If you’re trading, you’re tracked. If you’re mining or staking, there’s no clear rule yet—but the IRS-style reporting is coming. The 2025 budget might add more rules, maybe even a CBDC integration. For now, the only safe path is to keep records, pay taxes, and avoid unregulated platforms.

Below, you’ll find real stories and guides from people who’ve navigated this maze. Some lost money. Some saved thousands by knowing the rules. Others got caught in scams pretending to be compliant. Every post here is about what actually happened—not what someone promised.