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

When it comes to crypto regulation India, the set of laws and policies governing how cryptocurrencies are bought, sold, taxed, and used within India. Also known as Indian cryptocurrency laws, it’s not a ban—it’s a messy middle ground. The Reserve Bank of India never outlawed crypto, but for years, banks refused to serve crypto businesses. That changed in 2020 when the Supreme Court struck down the banking restriction. Since then, the government has been playing catch-up—trying to control something it can’t stop.

Today, crypto tax India, the 30% flat tax on crypto gains introduced in 2022. Also known as cryptocurrency income tax, it’s the clearest sign the government sees crypto as an asset class, not a currency. If you sell Bitcoin for a profit, you pay 30%. No deductions. No losses offset. And if you send crypto to a friend? That’s a taxable event too. The government tracks this through exchange data and blockchain analysis tools. Meanwhile, blockchain legality India, the legal status of using blockchain tech for non-crypto purposes like supply chains or land records. Also known as Indian blockchain policy, it’s still largely unregulated—but encouraged by state governments for public services. So while you can’t use Bitcoin to pay your electricity bill, you can use blockchain to track milk supply in Punjab.

What’s missing? A clear license for exchanges. No Indian crypto platform has official approval from SEBI or the RBI. That’s why most platforms operate in a gray zone—accepting rupees, letting you trade, but without legal protection. If a platform shuts down, you have no recourse. And while the government talks about a central bank digital currency (CBDC), it hasn’t said whether private crypto will be allowed to coexist. The draft bill from 2023? It vanished. The 2024 budget? No new rules. Just more tax collection.

What you’ll find below are real stories from India’s crypto scene: traders who got hit with tax notices, people who lost money on fake airdrops pretending to be Indian projects, and platforms that vanished overnight. You’ll see how local rules clash with global crypto trends, how scams target new users, and why some Indian investors are moving to offshore exchanges—not because they want to break the law, but because the rules keep shifting. This isn’t about banning crypto. It’s about controlling it. And if you’re holding any digital assets in India, you need to know exactly where you stand.