Crypto Country GuideCrypto rules and tax, country by country

India: regulation

Last reviewed: October 2026

On this page
  1. Legal status and supervision
  2. Exchanges and KYC
  3. Stablecoins
  4. Crypto ATMs
  5. Scams and fraud
    1. Where to report, and what happens
  6. Self-custody
    1. If you lose access to your wallet
  7. Sources
  • Crypto-assets are not regulated in India: there is no licensing law for exchanges or tokens, and no law that bans owning or trading crypto. The RBI’s 2018 circular on virtual currencies was set aside by the Supreme Court in March 2020.
  • What does apply is the money-laundering law: since March 2023 every crypto service provider serving Indian users, also from abroad, must register with FIU-IND and identify its customers.
  • FIU-IND registration is not a license. The government says the list is not public because it could “create the impression that registered entities are licensed, approved, or endorsed”.
  • We found no Indian law on stablecoins or crypto ATMs. Stablecoins count as VDAs for tax.
  • Report crypto fraud on the national cybercrime portal, cybercrime.gov.in; the State or UT police handle it. The government warns there “may be no regulatory recourse for any loss”.
  • We found no rule to register a self-custody wallet. A private buyer who pays you for crypto can owe the 1% TDS.

This page covers the legal status of crypto in India, what that means when you use an exchange, and the rules for your own wallet. The tax side is on personal tax, the exchanges themselves on exchanges. It is general information, not legal advice.

The Ministry of Finance has told Parliament several times that “Crypto-assets/Virtual Digital Assets (VDAs), including Non-Fungible Tokens (NFTs), are unregulated in India” (2 February 2026). In July 2025 it added that “the question of the legality or illegality of specific crypto platforms does not arise as on date”. There is no crypto law, no licensing regime and no regulator for crypto as such. These laws do apply:

  • Money laundering. A government notification of 7 March 2023 brought VDA service providers under the Prevention of Money Laundering Act, 2002 (PMLA). FIU-IND is their AML/CFT (anti-money laundering and counter-terrorist financing) supervisor.
  • Tax. Income from VDAs is taxed under the Income-tax Act (see personal tax).
  • Information technology. The government says “different aspects of the VDA sector are regulated under the Information Technology Act, 2000”. FIU-IND uses that Act to order the blocking of apps and websites of unregistered exchanges.
  • Company accounts. Companies must disclose crypto holdings in their financial statements (see business tax).

The Reserve Bank of India (RBI) does not supervise crypto, but it has issued advisories warning users, holders and traders about economic, financial, operational, legal, customer protection and security risks. In a circular of 31 May 2021, the RBI told banks and other regulated entities that its circular of 6 April 2018 on virtual currencies “was set aside by the Hon’ble Supreme Court on March 04, 2020” (Internet and Mobile Association of India v. Reserve Bank of India) and can no longer be cited. Banks may still carry out customer due diligence under the KYC, AML and FEMA rules. The government’s view on wider regulation is that any framework “can be effective only with significant international collaboration” (December 2025).

Exchanges and KYC

Every provider that offers exchange between VDAs and fiat currencies, transfer of VDAs, or safekeeping or administration of VDAs to Indian users must register with FIU-IND as a reporting entity. FIU-IND says these obligations “are activity-based and are not contingent on physical presence of the entity in India”. On 9 March 2026, 54 providers were registered, and FIU-IND had directed the takedown of the apps and websites of 53 unregistered ones. Which exchanges are on that list is on exchanges.

Registration means the provider must identify you (customer due diligence), keep records and report suspicious transactions to FIU-IND, which passes intelligence on to law enforcement. It does not mean the provider is licensed or protected. FIU-IND sets out the details in its “AML and CFT Guidelines for Reporting Entities Providing Services Related to Virtual Digital Assets”, last updated on 8 January 2026, which also describe the registration process. Indian exchanges also deduct the 1% TDS and, from 2026-27, report crypto-asset transactions to the tax department (see filing).

Stablecoins

We found no Indian law or regulator for stablecoins, and no official list of allowed or banned stablecoins (October 2026). For tax, a stablecoin such as USDT falls under the broad definition of a VDA, because it is a token or crypto-asset and not Indian or foreign currency. Selling or swapping it is therefore taxed at 30%, with 1% TDS, like any other VDA (see personal tax).

Crypto ATMs

We found no statement by the RBI, FIU-IND or the Ministry of Finance about crypto ATMs (October 2026), and no law that allows or bans them. An operator that exchanges crypto for rupees would provide a service covered by the PMLA notification, so it would have to register with FIU-IND like any other provider.

Scams and fraud

The Indian Cyber Crime Coordination Centre (I4C) of the Ministry of Home Affairs and FIU-IND warn about these schemes:

  • Romance and matrimonial scams. Fraudsters create fake profiles on matrimonial and dating platforms, gradually build trust, then push “fraudulent investment schemes or investing in cryptocurrency promising high returns” (I4C advisory of 31 October 2025).
  • Returns that are too good to be true. I4C advises not to invest if a scheme “appears too good to be true and providing unrealistic returns in very short span of time”.
  • Fake officials. Criminals send emails or letters in the name of FIU-IND or its officers and ask for fees for “certificates” or to release funds. FIU-IND says it does not provide such services, does not ask for fees and cannot block accounts.
  • Unregistered offshore platforms. FIU-IND has ordered the takedown of many offshore exchanges and says crypto products and NFTs “are unregulated and can be highly risky”.

Before you deal with someone, check mobile numbers, email addresses, account numbers and website URLs in the Suspect Repository of the national cybercrime portal.

Where to report, and what happens

  • National Cyber Crime Reporting Portal (cybercrime.gov.in). Under “Report Other Cybercrimes” or the financial fraud option you can report “online financial frauds” and “cryptocurrency crimes”. You register with your name and an Indian mobile number. The complaint goes to the police of the State or Union Territory you select, and you receive a reference number to track it.
  • Police. The police can convert a complaint on the portal into a First Information Report (FIR); you can also go to a police station.
  • Your bank, if you paid by bank transfer, UPI or card.
  • Keep evidence: messages, screenshots, wallet addresses and transaction IDs. The portal lets you upload files as evidence.

Neither the portal nor FIU-IND promises to get your money back. The government describes FIU-IND’s mandate as “limited to ensuring compliance with Anti-Money Laundering (AML)/Counter Financing of Terrorism (CFT) obligations”. The Enforcement Directorate has attached, seized or frozen ₹4,209.74 crore in crypto-related money-laundering cases (February 2026), but that does not mean victims are repaid. A dispute with an exchange is covered on where to complain.

Self-custody

In the sources listed below we found no Indian rule that requires you to register a self-custody wallet. Crypto in your own wallet is taxed the same way as crypto on an exchange: the 30% applies when you sell or swap it. Two points are specific to India:

  • Peer-to-peer sales. The 1% TDS applies to “any person” who pays a resident for a VDA. If you buy crypto directly from someone above the yearly threshold, you can have to deduct and pay the TDS yourself (see TDS).
  • Foreign platforms and wallets. The government says the Black Money Act applies to undisclosed foreign assets, including VDAs. It has not said whether a self-custody wallet counts as a foreign asset.

Holding crypto yourself means the keys are your responsibility. If you keep larger amounts of bitcoin in your own wallet, it is worth comparing a single hardware wallet with a multisig setup; this explanation of multisig versus single-sig sets out what each protects against.

If you lose access to your wallet

The Income Tax Department publishes no guidance on crypto you can no longer reach, for example after losing a seed phrase or because an exchange failed (October 2026). Because a VDA loss cannot be set off or carried forward, a lost wallet does not reduce your tax on other crypto gains. For the rest of your digital life, such as email, password managers and online accounts, see this introduction to planning a digital estate.

Sources

This page is general information, not legal advice. Rules change, so check the official sources above before you act.