Crypto Regulation in GIFT City IFSC (International Financial Services Centre)

Legal

GIFT City IFSC in Gujarat is India's international financial services centre regulated by IFSCA. It provides a more permissive environment for virtual digital asset activities compared to India's mainland, which imposes heavy taxation on crypto. IFSCA has been developing a regulatory sandbox for crypto activities.

Region: South AsiaRisk Score: 30/100

Tax Information

Capital Gains (Personal)
0% withholding on crypto transactions within IFSC (mainland India imposes 30% + 1% TDS)
Capital Gains (Corporate)
Tax holiday for IFSC units: 100% tax exemption for 10 out of 15 years
VAT on Crypto
No
Staking Tax
IFSC units may benefit from tax holiday provisions
Airdrop Tax
Not specifically addressed within IFSC framework
Mining Tax
IFSC units may benefit from tax holiday provisions
Summary
GIFT IFSC entities benefit from significant tax incentives including a 10-year tax holiday, exemption from GST on financial services, and no securities transaction tax. This contrasts sharply with India's mainland 30% flat tax on crypto gains and 1% TDS on transactions.

Licensing & Registration

License Required
Yes
Regulator
IFSCA (International Financial Services Centres Authority)
Framework
IFSCA (Finance Company) Regulations 2021; IFSCA Virtual Digital Asset Sandbox
License Types
Fintech Entity Registration, Regulatory Sandbox Participant, Bullion Exchange License (includes digital assets)
Estimated Cost (USD)
$10,000 - $75,000
Timeline
3-9 months
Ease of Licensing
Medium
Notes
IFSCA has been developing a regulatory framework for virtual digital assets within GIFT City. A regulatory sandbox approach is being used to test crypto-related activities. While India's mainland regulation is restrictive with heavy taxation, GIFT IFSC offers a more nuanced environment for international crypto businesses.

AML / KYC

KYC Required
Yes
Travel Rule
Yes
FATF Member
Yes
FATF Status
Compliant
Suspicious Activity Reporting
Yes

Mining

Mining Legal
Yes
Status
Legal
Electricity Cost ($/kWh)
$0.08
Renewable Energy
20%
Climate
Temperate
Infrastructure
Poor
Tax on Mining Income
Tax holiday for IFSC units: 100% tax exemption for 10 out of 15 years

DeFi, Stablecoins & NFTs

DeFi: unclearStablecoins: no rules

Soken Services

Legal Opinion
Available | $3,000 - $12,000 | 10 days
Banking
Difficulty: Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SWIFT, UPI
Card Payments
Visa, Mastercard
Company Registration
$8,000 | 30 days | Private Limited Company
Licensing Support
Available | $25,000 - $100,000

Sources

IFSCA SEBI
Reviewed: 2026-03-01ai_enriched

Frequently Asked Questions

Is crypto legal in GIFT City IFSC (International Financial Services Centre)?
Cryptocurrency is currently classified as "Legal" in GIFT City IFSC (International Financial Services Centre). GIFT City IFSC in Gujarat is India's international financial services centre regulated by IFSCA. It provides a more permissive environment for virtual digital asset activities compared to India's mainland, which imposes heavy taxation on crypto. IFSCA has been developing a regulatory sandbox for crypto activities.
What is the crypto tax rate in GIFT City IFSC (International Financial Services Centre)?
In GIFT City IFSC (International Financial Services Centre), the personal capital gains tax on crypto is 0% withholding on crypto transactions within IFSC (mainland India imposes 30% + 1% TDS), and the corporate tax rate is Tax holiday for IFSC units: 100% tax exemption for 10 out of 15 years. GIFT IFSC entities benefit from significant tax incentives including a 10-year tax holiday, exemption from GST on financial services, and no securities transaction tax. This contrasts sharply with India's mainland 30% flat tax on crypto gains and 1% TDS on transactions.
Do I need a crypto license in GIFT City IFSC (International Financial Services Centre)?
Yes, a crypto license is required in GIFT City IFSC (International Financial Services Centre). The regulator is International Financial Services Centres Authority under IFSCA (Finance Company) Regulations 2021; IFSCA Virtual Digital Asset Sandbox. Estimated licensing cost: $10,000 - $75,000.
Is crypto mining legal in GIFT City IFSC (International Financial Services Centre)?
Yes, crypto mining is legal in GIFT City IFSC (International Financial Services Centre). Electricity costs approximately $0.08/kWh. Mining income is taxed at: Tax holiday for IFSC units: 100% tax exemption for 10 out of 15 years.
What are the AML/KYC requirements for crypto in GIFT City IFSC (International Financial Services Centre)?
Yes, crypto businesses in GIFT City IFSC (International Financial Services Centre) must comply with KYC (Know Your Customer) requirements. The FATF Travel Rule is implemented. FATF compliance status: compliant.