India Crypto Regulation: What’s Legal, What’s Blocked, and How Traders Are Adapting
When it comes to India crypto regulation, the evolving legal framework governing cryptocurrency use, trading, and taxation within India. Also known as Indian cryptocurrency policy, it’s no longer about whether crypto is allowed—it’s about how strictly it’s controlled. In 2018, the Reserve Bank of India (RBI) banned banks from serving crypto businesses. By 2020, the Supreme Court overturned that ban. Then came the 30% tax on crypto gains in 2022, plus a 1% TDS on every trade. This wasn’t a crackdown—it was a signal: the government wants to track, not kill, crypto.
Today, RBI crypto policy, the central bank’s official stance and guidance on digital assets, including its cautious approach to private cryptocurrencies and its push for the digital rupee remains non-committal. Banks still hesitate to work with crypto firms, but exchanges like WazirX and CoinSwitch operate legally under India’s cryptocurrency laws India, the set of legal rules and compliance requirements that define how individuals and businesses can legally hold, trade, or tax digital assets in India. The key? Registration as a Virtual Asset Service Provider (VASP) with the Financial Intelligence Unit. Over 150 exchanges have done it. Meanwhile, the digital rupee, India’s central bank digital currency (CBDC) being tested by the RBI as a sovereign-backed digital payment system is moving forward—separately from Bitcoin or Ethereum, but still shaping how the public thinks about digital money.
Here’s what you won’t find in official statements: millions of Indians still use P2P platforms like Binance and OKX to buy crypto with UPI. Why? Because inflation is real, remittances are expensive, and young professionals see crypto as a way out of stagnant savings accounts. The 30% tax hit hard, but it didn’t stop adoption—it just made people smarter. They track their trades, use tax software, and avoid mixing personal and exchange wallets. Some even hold crypto in foreign wallets, though that comes with legal gray zones.
What’s missing from the headlines? The quiet rise of crypto education. Universities now offer blockchain electives. Local meetups discuss tax filing. Telegram groups share how to report gains without triggering audit flags. This isn’t rebellion—it’s adaptation. And it’s happening at scale.
Below, you’ll find real reviews and breakdowns of exchanges, scams, and regulatory shifts that matter to Indian users. From how Binance stays accessible despite government pressure, to why a fake airdrop called HUSL is spreading in WhatsApp groups, to how Nigeria’s similar path offers clues for what’s next—this collection cuts through the noise. No fluff. Just what’s working, what’s risky, and what’s changing right now in India’s crypto landscape.
- By Eva van den Bergh
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- 6 Dec 2025
India's Unregulated Crypto Status: Risks and Opportunities for Traders
India allows crypto trading but imposes heavy taxes and offers no legal protection. Traders face risks from scams, exchange failures, and sudden policy changes-yet opportunities remain for those who navigate the uncertainty carefully.