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

When you hear crypto regulation in India, the set of laws and policies governing how cryptocurrencies are bought, sold, taxed, and used within the country. Also known as Indian crypto laws, it’s no longer about whether crypto is banned—it’s about how tightly it’s controlled. The Reserve Bank of India once tried to shut down crypto banks in 2018, but the Supreme Court overturned that ban in 2020. Since then, the government hasn’t outlawed crypto—it’s just made it harder to ignore.

Today, crypto tax India, the 30% tax on crypto gains and 1% TDS on trades introduced in 2022. Also known as cryptocurrency tax India, it turned traders into taxpayers overnight. If you buy Bitcoin and sell it for profit, the government takes 30% before you even see your money. Plus, every trade—no matter how small—triggers a 1% tax deduction at source. That’s not a ban. That’s a revenue stream. And it’s working: India now ranks among the top five countries in global crypto adoption, according to Chainalysis.

blockchain regulation India, the push to separate blockchain tech from crypto trading, allowing innovation while controlling speculation. Also known as digital asset policy India, it’s why companies can still build wallets, NFT platforms, and DeFi tools—but can’t easily offer crypto-to-INR trading. The government doesn’t want crypto to replace the rupee. But it’s fine with blockchain improving supply chains, land records, and digital IDs. That’s why you’ll find startups in Bengaluru and Hyderabad building real blockchain tools, even as retail traders use P2P apps to buy Bitcoin.

And here’s the twist: while exchanges like WazirX and CoinSwitch had to shut down their INR trading pairs, P2P trading exploded. People now use UPI, bank transfers, and even cash to buy crypto from each other. No exchange needed. No regulation in sight. Just peer-to-peer deals, often with higher prices but zero KYC. That’s the gray zone where most Indian crypto users live.

What’s next? The government is drafting a formal digital asset bill. It might create a legal framework for stablecoins, allow crypto ETFs, or even launch a central bank digital currency (CBDC). But one thing’s clear: India won’t ban crypto again. It’s too big. Too many people use it. Too much money flows through it. The question isn’t whether crypto will survive in India—it’s how much control the state will take over it.

Below, you’ll find real reviews, deep dives, and blunt breakdowns of what’s actually happening on the ground—from unregulated exchanges that vanish overnight to tax loopholes traders still use. No fluff. No guesses. Just what’s working, what’s risky, and what’s changing fast.