India allows crypto trading and mining, but digital assets are not legal tender. Tax rules are now clear, with a 30% rate on many gains and a 1% TDS on qualifying transfers.
India's Parliamentary Standing Committee on Finance met Binance, WazirX, and ZebPay today for a closed-door hearing on virtual digital asset regulation, with hopes for a 'Crypto Tax 2.0' reform.
India’s Income Tax Department has aligned with the RBI on crypto risk, using data from 49 FIU-registered exchanges to check 1% TDS records against annual tax filings as scrutiny intensifies.
Binance still lacks direct INR spot pairs despite FIU-IND registration. The key hurdles are banking integration and RBI rules. Watch for bank partnerships, TDS cuts, and SEBI circulars in 2026 as potential triggers.
India attracted $340 billion in crypto inflows from June 2024 to June 2025, per OECD, ranking first in Asia. Despite harsh taxes, the country has 119M crypto users. On July 2, Parliament quizzed the RBI on crypto policy for the first time. Three regulatory paths lie ahead.
Gujarat National Law University's policy report proposes five regulatory models for crypto assets, including SEBI control, RBI oversight, multi-regulator system, a new dedicated authority, or temporary self-regulation. Nearly 120 million Indians engage with crypto without a comprehensive legal framework.
Binance says no Indian law bars crypto withdrawals to personal wallets, yet many local exchange users still face delays, repeated KYC checks, and blocked transfers driven by compliance and banking risk concerns.
India's central bank has reiterated its preference for containing crypto rather than regulating it, urging a full separation between lenders and digital assets. Tax officials also warned that offshore trading makes enforcement harder, raising expectations of tighter policy ahead.
