Cryptocurrency Regulation in India

When navigating cryptocurrency regulation in India, the set of laws, tax rules, and licensing requirements that govern digital assets. Also known as Indian crypto law, it touches everything from bank policies to tax filings. The Reserve Bank of India (RBI), India's central bank, influences the framework by issuing circulars that affect banking services for crypto businesses and the Securities and Exchange Board of India (SEBI), the securities regulator that oversees market integrity and can extend its reach to crypto asset trading platforms. Meanwhile, the Goods and Services Tax (GST), a consumption tax applied to crypto transactions, adds a fiscal layer that traders must account for. Together these bodies shape a landscape where cryptocurrency regulation in India encompasses tax policy, requires licensing for exchanges, and is driven by central bank guidance. Understanding how they interact helps you stay compliant and avoid costly mistakes.

Key Pillars You Should Know

First, the RBI’s stance on crypto has shifted from a blanket ban on banking services to a more nuanced approach, allowing certain payment‑gateway collaborations while still warning against unchecked trading. This means crypto exchanges need a clear licensing path, often involving the Financial Intelligence Unit (FIU) to satisfy anti‑money‑laundering (AML) requirements. Second, SEBI is increasingly looking at crypto tokens that qualify as securities; if a token offers profit‑sharing or dividend‑like rights, SEBI may require a prospectus or registration. Third, GST on crypto is levied at 18% on the value added during each transaction, so every buy‑sell pair generates a tax event that must be recorded. Finally, the upcoming crypto tax regime proposes a 30% flat rate on gains, with a 1% TDS (tax deducted at source) on high‑value trades, mirroring policies in other emerging markets. These pillars form a practical checklist: get FIU registration, assess token classification under SEBI, track GST on each trade, and prepare for the flat tax rate.

Below you’ll find a curated set of articles that break down each of these areas in detail. From step‑by‑step guides on securing a crypto exchange license in India to deep dives on the RBI’s latest circulars, the collection gives you actionable insights you can apply right now. Whether you’re a trader, an exchange founder, or just curious about where Indian crypto law is headed, the posts ahead will equip you with the knowledge you need to stay ahead of the curve.