India continues to impose a 30% tax on income from virtual digital assets, along with an additional 1% tax deducted at source on transfer amounts. According to ChainCatcher, around 54 crypto service providers have registered with the country’s Financial Intelligence Unit, serving 39 million verified users who collectively hold about $2.1 billion in assets. At the same time, the Reserve Bank of India has repeatedly told parliament that it favors a near-prohibitive approach toward private cryptocurrencies and stablecoins, while urging banks to avoid exposure in the name of financial stability. A long-promised crypto bill is still unfinished. Even so, Indian government agencies are using permissioned blockchain systems outside of trading activity, including in teacher recruitment records, cotton bale tracking, and a digital services platform tied to aviation oversight.
India continues to apply a 30% tax on income from virtual digital assets, along with an additional 1% tax deducted at source on transfer amounts.
According to ChainCatcher, about 54 crypto service providers in the country have registered with the Financial Intelligence Unit. Those firms serve 39 million verified users, who collectively hold about $2.1 billion in assets.
RBI has repeatedly argued for strict limits
The Reserve Bank of India (RBI) has told parliament on multiple occasions that it prefers a near-prohibitive approach toward private cryptocurrencies and stablecoins. The central bank has also urged banks to avoid related exposure as a way to protect financial stability. India’s long-promised crypto bill remains unfinished.
Government agencies are still using blockchain in non-trading settings
Even with that regulatory stance, Indian government bodies are using permissioned blockchain in non-trading scenarios.
- AIIMS Delhi uses blockchain to manage teacher recruitment records.
- Cotton Corporation of India tracks cotton bales through a blockchain-based identification system.
- The aviation regulator DGCA is building a digital services platform linked to blockchain.
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