India

Developing Partly Confirmed Verified August 24, 2026

India has no comprehensive crypto market law, but VDA transfers are taxed and VDA service providers are reporting entities under PMLA with FIU-IND registration and AML duties.

Financial Intelligence Unit – India

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Allowed

Is crypto trading allowed?

Allowed

Is P2P trading allowed?

Allowed

Are crypto payments allowed?

Restricted

Is crypto legal tender?

Is mining allowed?

Allowed

Is staking allowed?

Allowed

Is DeFi participation allowed?

Allowed

Are stablecoins allowed or regulated?

Restricted

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Allowed	Is holding crypto allowed?
Crypto Trading	Allowed	Is crypto trading allowed?
P2P Trading	Allowed	Is P2P trading allowed?
Crypto Payments	Restricted	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Allowed	Is mining allowed?
Staking	Allowed	Is staking allowed?
DeFi	Allowed	Is DeFi participation allowed?
Stablecoins	Restricted	Are stablecoins allowed or regulated?
NFTs	Allowed	Are NFTs allowed or regulated?
Token Launches	Regulated	Are token launches allowed?
Crypto Advertising	Regulated	Is crypto advertising allowed?
Banking Access	Restricted	Do crypto businesses have banking access?

Regulation Overview

India does not generally prohibit individuals from holding or trading virtual digital assets, but crypto is not legal tender and the Reserve Bank has not authorised private cryptocurrencies as currency or a payment system. The regulatory framework is fragmented. Income-tax law defines and taxes VDAs, while specified VDA service providers fall under the Prevention of Money Laundering Act and must register with FIU-IND, conduct KYC, monitor transactions and file reports. This AML registration does not amount to a general exchange licence or government approval of every product. Payments, stablecoins and banking use remain legally and operationally restricted compared with sovereign rupee payment systems.

Tax Information

Income from transfer of a VDA is taxed at 30% under section 115BBH, plus applicable surcharge and cess. Except acquisition cost, deductions and loss set-off are generally restricted. Section 194S generally imposes 1% TDS on qualifying transfer consideration, subject to thresholds and detailed rules.

Individual Tax Treatment

Individuals report VDA transfer income in the prescribed VDA schedule. Sale, crypto-to-crypto exchange and other transfers can trigger tax. Mining, staking, airdrops and business receipts require transaction-specific analysis for receipt value and later transfer tax.

Business Tax Treatment

Section 115BBH applies to income from VDA transfers, including business taxpayers. Businesses must also consider withholding, GST, accounting and PMLA obligations based on their role.

Income Tax Department

Business & Licensing

Specified VDA service providers serving Indian users must register with FIU-IND as reporting entities. India does not currently operate one comprehensive prudential crypto-exchange licence equivalent to MiCA.

AML / KYC Requirements

FIU-IND reporting entities must perform customer due diligence, enhanced due diligence where required, transaction monitoring, recordkeeping, travel-rule controls and prescribed reporting under PMLA rules and FIU guidelines.

Primary Regulator

Financial Intelligence Unit – India

fiuindia.gov.in

Crypto Laws & Regulations in India

Guidancecurrent_guidance

India VDA AML/CFT Guidelines

FIU-IND AML & CFT Guidelines for Reporting Entities Providing Services Related to VDAs

Published: March 10, 2023Effective: January 8, 2026Ref: FIU-IND Guidelines

Brings specified VDA service providers into an operational AML/KYC and reporting framework.

AML/KYCLicensingExchangesCustody

Official Source

Tax Ruleeffective

India VDA Income Tax Rules

Income-tax Act sections 115BBH and 194S

Published: April 1, 2022Effective: July 1, 2022Ref: 115BBH / 194S

Creates the special tax and withholding framework for income and consideration from VDA transfers.

Tax

Official Source

Court Decisioneffective

Internet and Mobile Association of India v. Reserve Bank of India

Published: March 4, 2020Effective: March 4, 2020Ref: W.P.(C) Nos. 528/2018 & 373/2018

India's Supreme Court set aside RBI's 2018 banking restriction because the measure was disproportionate on the record, while recognizing RBI's regulatory authority over virtual-currency risks.

Current state: Supreme Court judgment effective 2020-03-04; it set aside the 2018 circular but did not declare crypto legal tender or create a licensing regime

BankingConsumer ProtectionEnforcementAML/KYCExchanges

Official Source

Guidancestruck_down

Prohibition on dealing in Virtual Currencies

Published: April 6, 2018Effective: April 6, 2018Ref: RBI/2017-18/154; DBR.No.BP.BC.104/08.13.102/2017-18

The RBI circular barred RBI-regulated entities from dealing in virtual currencies or facilitating related services; the Supreme Court set it aside on proportionality grounds in 2020.

Current state: No longer valid from 2020-03-04 after Supreme Court judgment

BankingConsumer ProtectionAML/KYCEnforcement

Official Source

Noticeeffective

PMLA Gazette Notification S.O. 1072(E) — Virtual Digital Asset Service Providers

Notification S.O. 1072(E) under the Prevention of Money-Laundering Act, 2002

Effective: March 7, 2023Ref: S.O. 1072(E)

India's PMLA Gazette Notification S.O. 1072(E), dated 7 March 2023, brings specified virtual digital asset activities within the Prevention of Money-Laundering Act reporting-entity perimeter for the first time. It triggers FIU-India registration, customer due diligence, recordkeeping and suspicious-transaction reporting for persons carrying on listed VDA exchange, transfer, custody, administration and issuer-related financial services for or on behalf of another person.

AML/KYCExchanges

Official Source