Crypto Regulation in India

Restricted

Tax Information

Capital Gains (Personal)
30% flat tax on crypto gains (Section 115BBH of Income Tax Act); no deductions except cost of acquisition; 1% TDS on transfers above INR 10,000
Capital Gains (Corporate)
30% flat tax on crypto gains (same as individuals); no set-off of losses against other income
VAT on Crypto
No
Staking Tax
30% flat tax on staking rewards as income from virtual digital assets
Airdrop Tax
30% tax on airdrop value; taxed upon receipt at market value
Mining Tax
--

Licensing & Registration

License Required
Yes
Regulator
RBI / SEBI / FIU-IND (Reserve Bank of India / Securities and Exchange Board of India / Financial Intelligence Unit India)
Framework
Virtual Digital Assets taxation (Finance Act 2022); Prevention of Money Laundering Act (PMLA) applied to VDAs (March 2023); comprehensive crypto bill pending
License Types
--
Estimated Cost (USD)
$50,000 - $200,000 (FIU registration + compliance infrastructure)
Timeline
3-12 months
Ease of Licensing
Complex

AML / KYC

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

Mining

Mining Legal
Yes
Status
Restricted
Electricity Cost ($/kWh)
$0.08
Renewable Energy
22%
Climate
Hot
Infrastructure
Good
Tax on Mining Income
30% flat tax on crypto gains (same as individuals); no set-off of losses against other income
Notes
Hot climate increases cooling costs for mining operations.

DeFi, Stablecoins & NFTs

DeFi: unregulatedStablecoins: unregulatedNFTs: regulatedCBDC: pilot - Digital Rupee (e-Rupee) wholesale pilot launched December 2022; retail pilot expanded to multiple cities

Soken Services

Legal Opinion
Available | $5,000 - $20,000 | 14 days
Banking
Difficulty: Very Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SWIFT
Card Payments
Visa, Mastercard
Licensing Support
Available | $50,000 - $200,000

Sources

Reserve Bank of India Securities and Exchange Board of India FIU India
verified

Frequently Asked Questions

Is crypto legal in India?
Cryptocurrency is currently classified as "Restricted" in India.
What is the crypto tax rate in India?
In India, the personal capital gains tax on crypto is 30% flat tax on crypto gains (Section 115BBH of Income Tax Act); no deductions except cost of acquisition; 1% TDS on transfers above INR 10,000, and the corporate tax rate is 30% flat tax on crypto gains (same as individuals); no set-off of losses against other income.
Do I need a crypto license in India?
Yes, a crypto license is required in India. The regulator is Reserve Bank of India / Securities and Exchange Board of India / Financial Intelligence Unit India under Virtual Digital Assets taxation (Finance Act 2022); Prevention of Money Laundering Act (PMLA) applied to VDAs (March 2023); comprehensive crypto bill pending. Estimated licensing cost: $50,000 - $200,000 (FIU registration + compliance infrastructure).
Is crypto mining legal in India?
Yes, crypto mining is legal in India. Electricity costs approximately $0.08/kWh. Mining income is taxed at: 30% flat tax on crypto gains (same as individuals); no set-off of losses against other income. Hot climate increases cooling costs for mining operations.
What are the AML/KYC requirements for crypto in India?
Yes, crypto businesses in India must comply with KYC (Know Your Customer) requirements. The FATF Travel Rule is implemented.