GIFT City IFSC (International Financial Services Centre) Free Zone

GIFT City IFSC operates under the unified regulatory framework of the International Financial Services Centres Authority (IFSCA), which provides a clear and comprehensive regulatory environment for financial services including crypto assets. The IFSCA Virtual Digital Asset Sandbox facilitates innovation in digital assets within a regulated framework.

Overview

StatusLegal
Risk Score30/100 (Moderate Risk)
Regionsouth asia
CurrencyINR

Tax Information

VAT on CryptoNo

The regulator page does not specify detailed crypto tax rates or rules, but indicates no VAT on crypto transactions within the IFSC.

Licensing & Registration

RequiredYes
RegulatorIFSCA
FrameworkIFSCA (Finance Company) Regulations 2021; IFSCA Virtual Digital Asset Sandbox
Easemedium
Cost (USD)$10,000 - $75,000

Licensing is governed by IFSCA regulations with a sandbox framework for virtual digital assets to encourage innovation while ensuring compliance.

Enforcement Activity

Level: Moderate

Enforcement focused on unlicensed operators and consumer protection

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberNo
FATF Statusfsrb_only
FATF BodyFATF
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: regulated

DeFi activities are regulated under the IFSCA framework, with sandbox provisions allowing controlled experimentation and compliance.

Stablecoins

Status: regulated

Stablecoins are regulated under the IFSCA framework, ensuring compliance with financial regulations applicable to digital assets.

NFTs

Status: no_rules

No specific NFT regulation

Mining

LegalYes
Electricity Cost$0.08/kWh
Renewable Energy20%
Infrastructuregood

Mining is legal within GIFT City IFSC with competitive electricity costs and a moderate renewable energy mix. Infrastructure supports financial and tech services well.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index40/100
Banking Accessmoderate

Risk Factors

GIFT City IFSC benefits from India's overall stable political environment and improving regulatory framework, though regional geopolitical tensions and evolving regulations pose moderate risks.

Sources

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Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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