Crypto regulation in India
Not banned, not legal tender, and taxed harder than almost anywhere else.
Crypto is legal to own and trade in India, but it isn't legal tender and there is no full regulatory framework. Gains on "virtual digital assets" are taxed at a flat 30% with no deductions except cost and no loss offsets, and 1% tax is deducted at source (TDS) on most transfers. Exchanges serving Indians, including foreign ones, must register with the Financial Intelligence Unit. Budget 2026 kept these rules.
Last reviewed: November 2026. Facts on this page were checked against official sources on November 4, 2026.
India at a glance
| Owning crypto | Legal. |
|---|---|
| Buying and selling | Through exchanges registered with FIU-IND. |
| Paying with crypto | Not legal tender; payments are rare and taxable. |
| Exchange licensing | FIU-IND registration under the money-laundering law (since March 2023); no dedicated crypto licence. |
| Mining | No specific law; rewards taxable. |
| Tax | 30% flat tax on gains (plus surcharge and cess), no loss set-off, 1% TDS on transfers. |
| Stablecoins | No stablecoin framework. |
| Restrictions and bans | Unregistered offshore exchanges blocked; GST on exchange fees; advertising disclaimers. |
Owning crypto
Owning crypto is legal. In 2018 the Reserve Bank of India barred banks from serving crypto businesses, but the Supreme Court struck that down on March 4, 2020. The RBI remains openly skeptical of private crypto and promotes its own digital rupee.
Buying and selling
Indians buy through exchanges that must register with the Financial Intelligence Unit (FIU-IND) and follow anti-money-laundering rules. In late 2023 and early 2024 the government had unregistered offshore exchanges' websites and apps blocked; several later registered and paid penalties.
Paying with crypto
Crypto is not legal tender. Using it to pay is a transfer subject to the 30% tax and TDS.
Exchange licensing
Since March 2023, virtual digital asset service providers fall under the Prevention of Money Laundering Act and must register with FIU-IND. There is no separate licensing law; a long-discussed crypto bill has not been introduced.
Mining
There is no specific law on mining. Mined coins are taxed under the virtual digital asset rules when sold.
Tax
Since April 1, 2022, income from transferring virtual digital assets is taxed at a flat 30% (plus surcharge and 4% cess). Only the cost of acquisition can be deducted, and losses can't be set off against any other income or carried forward, even losses on other crypto. Since July 1, 2022, 1% tax deducted at source (TDS) applies to transfers above small thresholds; on an Indian exchange, the exchange deducts it for you. Budget 2026 kept the 30% rate and 1% TDS and added penalties for exchanges and other reporting entities that fail to file, or file inaccurate, crypto transaction statements (from April 1, 2026). The new Income Tax Act 2025, effective April 1, 2026, renumbered the provisions without changing these rates.
Stablecoins
India has no stablecoin framework, and the RBI has warned about stablecoins' risks to monetary sovereignty.
Restrictions and bans
- Exchange fees are subject to 18% GST.
- Advertising standards require crypto ads to carry risk disclaimers.
- Unregistered foreign exchanges can be blocked.
What changed recently
RBI bars banks from serving crypto businesses.
Supreme Court strikes down the RBI ban.
30% tax on virtual digital asset income begins.
1% TDS begins.
Crypto businesses brought under the money-laundering law.
Budget 2026 keeps the 30% tax and 1% TDS.
- A government discussion paper on crypto policy has been promised for years; no comprehensive law existed when we checked.
This page summarizes the rules for general understanding. Laws change, and how they apply depends on your circumstances. For a decision that matters, check the official sources below or ask a qualified local adviser.
Frequently asked questions
Is crypto banned in India?
No. Owning and trading crypto is legal, but it isn't legal tender and it's taxed at 30% plus 1% TDS.
Can I offset crypto losses in India?
No. Losses on one crypto can't be set off against gains on another or against other income, and they can't be carried forward.
What is 1% TDS on crypto?
Tax deducted at source: 1% of the value of most crypto transfers is withheld and credited against your tax. Indian exchanges deduct it automatically.
Where to next
Sources
- Income Tax Department of India
- Financial Intelligence Unit, India (FIU-IND)
- India retains current crypto tax in Budget 2026 (Decrypt, February 2026)
Written for beginners and checked against the sources listed. Last reviewed November 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.