Indian crypto regulations: What’s allowed, banned, and how it affects you in 2025

When it comes to Indian crypto regulations, the legal and tax framework governing cryptocurrency use, trading, and taxation in India. Also known as India’s digital asset rules, it’s not a ban—it’s a tight leash. The government doesn’t outlaw crypto, but it makes sure every transaction leaves a paper trail. That’s why millions still trade, stake, and hold Bitcoin and Ethereum, even with the 30% tax on gains and 1% TDS on every trade.

This isn’t just about taxes. RBI crypto policy, the Reserve Bank of India’s stance on banks serving crypto businesses. Also known as central bank restrictions on crypto, it used to block crypto exchanges from banking services—but that changed after the 2020 Supreme Court ruling. Today, most Indian exchanges operate with licensed banking partners, but they’re still under heavy scrutiny. Meanwhile, crypto taxation India, the 30% capital gains tax and 1% TDS applied to all crypto transactions since April 2022. Also known as India’s crypto tax regime, it’s one of the highest in the world. Unlike stocks, you can’t offset losses. Every sale, swap, or even gift triggers a tax event. If you bought ETH in 2021 and sold it in 2024, the government already knows. And if you didn’t report it, you’re at risk.

What about exchanges? crypto exchange India, licensed platforms like WazirX, CoinDCX, and ZebPay that comply with KYC and tax reporting. Also known as Indian crypto trading platforms, they’re the only safe way to buy and sell crypto locally. Unregulated foreign exchanges? They’re not illegal to use, but they offer zero legal protection. If your funds vanish, you can’t go to the police. And if you get flagged for suspicious activity, the Income Tax Department can freeze your bank account. The rules keep shifting. In 2024, the government started pushing for real-time transaction monitoring. In 2025, they’re testing a digital rupee integration for crypto settlements. That means your crypto trades might soon be tied directly to your bank account.

There’s no gray area left. If you’re holding crypto in India, you’re either paying taxes or risking penalties. There’s no "wait and see" anymore. The system is built to catch you. But that doesn’t mean crypto is dead here. It means you need to be smarter. Know the rules. Track every trade. Use only licensed platforms. And don’t assume anonymity exists anymore—because it doesn’t.

Below, you’ll find real reviews, enforcement updates, and breakdowns of what’s actually happening on the ground—not just what the headlines say. From exchange security gaps to how people are still finding ways to trade, this collection cuts through the noise.