Crypto Regulation India: What’s Legal, What’s Not in 2025

When it comes to crypto regulation India, the legal framework governing cryptocurrency use, trading, and taxation within India. Also known as Indian cryptocurrency laws, it’s a mix of strict warnings, unclear bans, and quiet acceptance — all while millions trade Bitcoin and Ethereum daily. Unlike countries that outright ban crypto or fully embrace it, India walks a tightrope. The government doesn’t say you can’t own crypto, but it also doesn’t say you’re safe doing it.

One big thing you need to know: RBI crypto policy, the Reserve Bank of India’s stance on digital assets has shifted. Back in 2018, the central bank banned banks from serving crypto businesses. That ban got overturned by the Supreme Court in 2020. Since then, banks have quietly started working with crypto exchanges again. But the RBI still doesn’t recognize crypto as legal tender. It’s not money, but it’s not illegal to hold either. Then there’s crypto taxation India, the official rule that treats crypto as a taxable asset. Since 2022, every trade, swap, or sale triggers a 30% tax. Plus, a 1% TDS applies to every transaction over ₹10,000. No exceptions. Even if you just swap one coin for another, the government takes its cut.

What about exchanges? Platforms like WazirX, CoinDCX, and ZebPay operate legally because they follow KYC rules and report to tax authorities. But if you use Binance or Bybit without verifying your identity, you’re playing with fire. The government has blocked dozens of foreign platforms, and they’re cracking down on unregistered apps. And while mining isn’t banned, the high electricity costs and lack of clear rules make it risky. Most miners in India are either shut down or operating in the gray zone.

There’s no official ban on crypto, but there’s no real protection either. If you get hacked, scammed, or lose funds on a platform, you’re on your own. The courts haven’t ruled on crypto ownership rights. The tax department doesn’t care if you’re a beginner or a whale — they want their 30%. And if you’re thinking about launching a token or starting a DeFi project in India? Forget it. No legal path exists. The government is watching, waiting, and taxing — not banning, but not endorsing either.

What you’ll find below are real stories from people who’ve been caught in this mess. From failed airdrops tied to Indian users, to exchanges that vanished overnight, to how blockchain forensics is now being used to track tax evaders. This isn’t theory. It’s what’s happening right now — in your wallet, on your screen, in your bank account.