India

Cryptocurrency activities in India are under significant regulatory restrictions with no clear legal framework for general crypto use. The Reserve Bank of India maintains a cautious stance, emphasizing monetary stability and regulatory oversight.

Overview

StatusRestricted
Risk Score50/100 (Moderate Risk)
Regionsouth asia
CurrencyINR

Tax Information

Capital Gains (Personal)30% capital gains tax on crypto assets
Capital Gains (Corporate)30% corporate tax on crypto gains
VAT on CryptoNo
Staking TaxTaxed as income
Airdrop TaxTaxed as income

India taxes crypto capital gains at 30% for individuals and corporations, with staking, mining, and airdrops treated as taxable income. VAT/GST does not apply to crypto transactions.

Licensing & Registration

RequiredYes
RegulatorRBI / SEBI / FIU-IND
FrameworkReserve Bank of India Crypto Regulatory Framework (proposed)
Easehard
Cost (USD)$50,000 - $200,000 (FIU registration + compliance infrastructure)

Licensing is required for crypto exchanges and service providers, with stringent KYC and compliance obligations. The framework is still evolving with high regulatory scrutiny.

Enforcement Activity

Level: High

No detailed enforcement information available

CBDC

StatusPilot
NameDigital Rupee
Issuing AuthorityRBI
Modelhybrid
TechnologyDLT

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberYes
FATF Statuscompliant
FATF BodyFATF
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: Restricted

DeFi platforms face regulatory restrictions and are not formally recognized under current Indian law, with ongoing regulatory scrutiny.

Stablecoins

Status: Restricted

Stablecoins are under regulatory restrictions with no formal approval; RBI has expressed concerns over their use and potential risks.

NFTs

Status: regulated

Mining

LegalYes
Electricity Cost$0.082/kWh
Renewable Energy24%
Infrastructurefair

Mining is legal but faces restrictions including licensing and compliance requirements. Electricity costs are moderate; infrastructure is developing.

Geopolitical Risk

Stabilitymoderate
SanctionsNo
Corruption Index40/100
Banking Accessrestricted
Sanctions Program ActiveYes

Risk Factors

India maintains a cautious regulatory environment with moderate political stability. Crypto businesses face banking restrictions and regulatory uncertainty, though no international sanctions apply.

Recent Political Events

Sources

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Last reviewed: 2026-05-06 · Data source: Soken Crypto Legal Map

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