Crypto Legal India: What You Can and Can't Do with Crypto in 2025

When it comes to crypto legal India, the regulatory status of cryptocurrency in India as of 2025. Also known as cryptocurrency regulation India, it’s not a ban—it’s a strict, taxed, and monitored system. You can buy, sell, and hold Bitcoin, Ethereum, and hundreds of other coins without breaking the law. But you can’t use them to pay for your groceries, rent, or Netflix subscription. That’s the reality.

India’s approach to crypto tax India, the 30% tax on crypto gains and 1% TDS on every trade introduced in 2022. Also known as digital asset taxation India, it turned crypto into a financial asset class—not currency. Every time you trade, even if you break even, 1% is automatically withheld by exchanges like CoinDCX or ZebPay. And if you make a profit, 30% goes to the government, with no offset for losses. No deductions. No exemptions. Just a flat, heavy tax. This isn’t punishment—it’s transparency. The government wants to track every transaction. That’s why real-name verification is mandatory, and anonymous wallets don’t work on Indian exchanges.

The digital rupee, India’s central bank digital currency (CBDC) launched by the Reserve Bank of India. Also known as e-Rupee, it’s not crypto—but it’s changing how people think about digital money. Unlike Bitcoin, it’s backed by the RBI, and unlike crypto, it’s legal tender. You can use it to pay taxes, buy bus tickets, or send money to a friend. And because it’s government-controlled, it’s the only digital payment method in India that’s fully legal for everyday spending. That’s why the government pushed crypto payments out of the retail space—they’re competing with their own system.

Trading? Still legal. Airdrops? Still yours to claim—just report them. DeFi? You can use global platforms like Uniswap, but Indian banks won’t touch your crypto wallet. Exchanges like CoinSwitch Kuber and WazirX operate under strict compliance rules. And if you’re thinking of starting a crypto business? Forget offshore setups. The RBI doesn’t recognize foreign exchanges as legal payment processors, and Indian courts have ruled that crypto is property, not currency.

There’s no gray area here. You can’t evade taxes. You can’t use crypto to pay for services. You can’t run an unlicensed exchange. But you can trade, hold, and earn from it—just know the rules. The posts below break down exactly what’s allowed, what’s risky, and which platforms are safe to use in India right now. No fluff. No hype. Just what you need to stay legal and avoid scams.