India Crypto Regulations: What’s Allowed, Blocked, and How It Affects You
When you hear India crypto regulations, the legal framework governing cryptocurrency use, trading, and taxation in India. Also known as crypto laws in India, it’s not just about bans or taxes—it’s about who controls your money and how much of it the government can track. In 2018, the Reserve Bank of India tried to shut down crypto banking. It didn’t work. By 2020, the Supreme Court overturned the ban. But the real shift came in 2022, when India slapped a 30% tax on crypto gains and added a 1% TDS on every trade. That’s not a small fee—it’s a signal. The government isn’t stopping crypto. It’s trying to control it.
That’s where RBI crypto ban, the central bank’s failed attempt to block financial institutions from serving crypto exchanges comes in. Even though it was reversed, banks still treat crypto users with suspicion. Many Indians now use P2P platforms like WazirX or CoinSwitch to trade, because they can’t link their bank accounts directly. Meanwhile, digital rupee, India’s central bank digital currency (CBDC) being rolled out by the RBI is quietly becoming the government’s preferred alternative. It’s centralized, traceable, and backed by the state. If you’re holding Bitcoin or Ethereum, you’re choosing privacy over convenience. If you’re using the digital rupee, you’re choosing safety over control.
And then there’s crypto tax India, the 30% tax on profits from crypto sales, plus a 1% tax deducted at source on every transaction. No deductions. No losses offset. Even if you bought Bitcoin at $20,000 and sold at $18,000, you still pay tax on the sale amount. That’s not a tax policy—it’s a trap for retail traders. Yet, millions still trade. Why? Because crypto still offers access to global markets, DeFi yields, and a way around inflation. The rules are strict, but the demand hasn’t dropped. People are just getting smarter. They use wallets that don’t require KYC. They move funds through Layer-2 networks. They avoid linking bank accounts unless they have to.
What you’ll find in the posts below isn’t a list of legal opinions. It’s real-world examples of how Indians—and people in similar regulatory zones—navigate these rules. You’ll see how users in countries with heavy restrictions, like Iran and Jordan, use decentralized tools to bypass banking blocks. You’ll learn how IP tracking can expose your wallet even if you never gave your name. You’ll see why some airdrops vanish overnight, and how to tell the difference between a real project and a scam. This isn’t theory. It’s what’s happening right now, on the ground, in places where crypto is legal but not welcome.
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Non-Custodial Crypto Wallet Ban Proposals in India: What’s Really Happening?
India hasn't banned non-custodial crypto wallets, but heavy taxes and unclear rules make them hard to use. Learn what's really happening with self-custody, TDS, UPI limits, and what to do in 2025.