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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- May 27, 2025 08:03 UTC
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Crypto Regulations in India 2025
India’s cryptocurrency landscape in 2025 remains a mix of cautious regulation and rapid adoption. While cryptocurrencies like Bitcoin are not recognized as legal tender, they operate in a regulatory grey area with evolving tax and compliance frameworks. Over 107 million Indians now engage with crypto assets.
Below is a timeline of key crypto regulation updates in India during 2025,
Table of contents
Crypto Regulation India Timeline – 2025
- May 22, 2025:
FSB Peer Review Preparation
India gears up for the Financial Stability Board (FSB) review in October, aiming to align local crypto regulation with global regulatory standards. - April 1, 2025:
SEBI Oversight Begins
SEBI starts monitoring crypto tokens that resemble securities. A multi-agency regulatory model is proposed, including RBI, SEBI, and the Finance Ministry. - February 13, 2025:
VDA Income Tax Amendment Bill Introduced
The bill expands the scope of Virtual Digital Assets (VDAs) to include NFTs and undisclosed income. However, the 30% tax rate remains unchanged. - February 10, 2025:
Crypto Exchanges Declared Reporting Entities
Exchanges, wallets, and even mining pools are categorized as “reporting entities.” They must report all transactions to tax authorities under the new AML guidelines. - February 1, 2025:
Union Budget 2025-26 Highlights
FM Nirmala Sitharaman mandates crypto exchanges to report buyer/seller details under Section 285BAA of the Income Tax Act, enhancing transaction transparency.
Crypto Tax in India – 2025 (Fact-Checked)
As of now, no official reduction has been made to the 30% tax on crypto gains or the 1% TDS, despite industry demands.
1. For Investors and Traders
- Flat 30% Tax on gains from crypto sales, swaps, or gifts.
No deductions allowed except for cost of acquisition. - 1% TDS on transfers above ₹10,000 (buyer deducts and remits).
- No loss set-off or carry-forward permitted.
Example: Buy BTC at ₹2.72 lakh → Sell at ₹8.72 lakh → ₹6 lakh profit → Tax = ₹1.8 lakh + TDS = ₹6,000
2. For Crypto Companies & Exchanges
- KYC/AML compliance is mandatory.
- 1% TDS to be collected and remitted on every qualifying user transaction.
- Transaction reporting to tax authorities under PMLA and IT laws.
| Category | Tax Rate | TDS | Example |
| Investors | 30% | 1% if >₹10k | ₹50k profit → ₹15k tax + ₹500 TDS |
| Traders | 30% | 1% if >₹10k | Taxed as business income |
| Companies | NA | 1% collected | ₹10L transaction → ₹10k TDS |
Crypto Adoption in India (2025 Snapshot)
- Active Users: Over 107.3 million Indians (7.37% of population) hold or trade crypto.
- Revenue Forecast: India’s crypto market is projected to hit $6.4 billion by year-end.
- Exchanges: Platforms like CoinDCX, CoinSwitch, and Mudrex offer access to over 500 tokens.
- Growth Drivers: Rising financial inclusion, smartphone penetration, and blockchain innovation.
- Government Holdings: No official disclosure yet; policies prioritize transparency and user safety.
Conclusion
India’s crypto regulation in 2025 reflects a delicate balance between enabling innovation and enforcing oversight. With strict taxes (30% + 1% TDS) and real-time transaction reporting, the government is creating a compliant ecosystem without enforcing an outright ban. As the FSB review nears, clarity in crypto regulation India could open new doors for mass adoption and position the country at the forefront of the $7 trillion global digital economy.
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FAQs
India imposes a flat 30% tax on crypto gains and a 1% TDS on transfers over ₹10,000, with no loss set-off.
Cryptocurrencies are not legal tender in India but are legal to hold and trade within a regulated tax and compliance framework.
India has a multi-agency approach involving RBI, SEBI, and the Ministry of Finance to oversee various aspects of cryptocurrency.
Yes, from April 1, 2025, SEBI began monitoring crypto tokens resembling securities, aligning with a multi-agency regulatory model.
Yes, India is actively reviewing its crypto stance and regulations in 2025 to align with evolving global policies and standards, including the upcoming FSB review.
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