India continues to apply a strict tax regime to virtual digital assets, including a flat 30% tax on gains and an additional 1% tax deducted at source on transfers. At the same time, the country has around 54 crypto service providers registered with the Financial Intelligence Unit, serving 39 million verified users who together hold about $2.1 billion in assets.
The Reserve Bank of India has repeatedly told Parliament that it favors a restrictive approach toward private cryptocurrencies and stablecoins. The central bank has also urged banks to avoid exposure to the sector, citing financial stability concerns. Even so, India’s long-promised crypto bill remains unfinished.
Alongside that cautious stance on crypto trading and ownership, government bodies in India are still using permissioned blockchain systems for non-trading purposes. Examples cited include AIIMS Delhi managing faculty recruitment records on blockchain, the Cotton Corporation of India tracking cotton bales through a blockchain identification system, and the Directorate General of Civil Aviation building a digital service platform linked to blockchain.
India imposes a flat 30% tax on income from virtual digital assets and an additional 1% tax deducted at source on transfers. The country has about 54 crypto service providers registered with the Financial Intelligence Unit, serving 39 million verified users who collectively hold about $2.1 billion in assets.
On the regulatory side, the Reserve Bank of India has repeatedly told Parliament that it favors a restrictive stance toward private cryptocurrencies and stablecoins. The central bank has also urged banks to avoid related exposure in order to protect financial stability. India’s long-promised crypto bill is still unfinished.
Government agencies are using blockchain outside trading activity
At the same time, Indian government agencies are using permissioned blockchain in non-trading settings.
- AIIMS Delhi uses blockchain to manage faculty recruitment records.
- The Cotton Corporation of India tracks cotton bales through a blockchain identification system.
- The Directorate General of Civil Aviation is building a digital services platform linked to blockchain.
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