The post Crypto Regulations in India 2025 appeared first on Coinpedia Fintech News
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
Crypto Tax in India – 2025 (Fact-Checked)
Crypto License in India
Crypto Adoption in India (2025 Snapshot)
Conclusion
FAQs
Crypto Regulation India Timeline – 2025
July 7, 2025: Bybit Imposes 18% GST
Bybit imposed an 18% GST on all crypto transfers of – spot and margin trading, derivatives, fiat-related transactions, withdrawals, and stakings. Additionally, it also launched the termination of some legacy products and services on July 9, 2025.
June 2025: Discussion paper on Cryptocurrency
The Indian government planned to release a discussion paper to establish a regulatory framework for crypto in India. The initiative also promised to seek public consultation on– stakeholders, including financial institutions, legal experts, crypto companies, and the general public.
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
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).
1% TDS to be collected and remitted on every qualifying user transaction.
Transaction reporting to tax authorities under PMLA and IT laws.
3. Bybit tax
All Bybit users must pay 18%Goods and Services Tax (GST) on all crypto transfers.
Services like spot and margin trading, derivatives, fiat transactions, and crypto withdrawals are subject to tax.
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 License in India
Crypto exchanges and service providers must register with the Financial Intelligence Unit (FIU) and comply with anti-money laundering (AML) and know your customer (KYC) policies to be eligible for an official license in India.
What Do Indians Think About Their Crypto Legislation?
Vote for a better crypto framework: 1 in 93% support crypto regulation. The citizens of India want smart regulations instead of bans. 56% of them support a strong crypto framework, 13% support taxation, and only 24% prefer lighter rules.
Votes over new authority: The report also shows that 51% of the total crypto users prefer a new authority over RBI (22%) or SEBI (20%).
Vote against tax regime: When asked about what the biggest discouraging point in crypto in India is, 66% of people voted for 30% on tax gains, while 84% say crypto taxes are unfair vs equities.
Vote on policy clarity and teaching crypto: 90% would invest more if rules were clearer & taxes fairer. People also showed positive support for crypto education in India, with 76% of votes.
Vote on Web3: 78% voted that Indians are missing out Web3 trend.
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
What is India’s crypto tax in 2025?
India imposes a flat 30% tax on crypto gains and a 1% TDS on transfers over ₹10,000, with no loss set-off.
Are cryptocurrencies legal in India?
Cryptocurrencies are not legal tender in India but are legal to hold and trade within a regulated tax and compliance framework.
Is there a regulatory body for cryptocurrency in India?
India has a multi-agency approach involving RBI, SEBI, and the Ministry of Finance to oversee various aspects of cryptocurrency.
Does SEBI regulate crypto in India?
Yes, from April 1, 2025, SEBI began monitoring crypto tokens resembling securities, aligning with a multi-agency regulatory model.
Is India reviewing crypto regulations due to global policy changes?
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.