Crypto Legal India: What’s Allowed, Banned, and What Changed After the Supreme Court Ruling

When you hear crypto legal India, the current state of cryptocurrency regulation in India, shaped by court decisions, tax laws, and banking policies. Also known as cryptocurrency regulation India, it’s not about banning crypto—it’s about controlling how it flows through the financial system. Before 2020, Indian banks were told to cut off services to crypto exchanges. That meant you couldn’t deposit rupees to buy Bitcoin, sell Ethereum, or even cash out profits. It felt like the government was shutting the door. But in 2020, the Supreme Court crypto India, the highest court in India that overturned the Reserve Bank of India’s crypto banking ban. Also known as Indian Supreme Court crypto ruling, it ruled the ban was unconstitutional. That single decision unlocked everything: exchanges like Unocoin and CoinDCX grew fast, users returned, and trading volumes jumped. The door wasn’t just open—it was wide open.

But opening the door didn’t mean no rules. The government didn’t legalize crypto as money. It didn’t make Bitcoin legal tender. Instead, it let people trade—but with strings attached. The biggest one? crypto taxation India, the 30% tax on crypto gains and 1% TDS on every trade introduced in 2022. Also known as Indian crypto tax rules, it turned crypto from a speculative play into a taxable asset. Every time you sell, swap, or even gift crypto, the government takes its cut. And if you don’t report it? You risk penalties. This isn’t about stopping crypto—it’s about controlling it. The RBI still doesn’t allow banks to directly support crypto businesses, but they can’t stop you from using P2P apps or UPI to buy Bitcoin. That’s why India still has over 15 million crypto users, even with the tax bite.

What’s missing? Clear licensing for exchanges. No one knows if a new crypto platform will be allowed tomorrow. The government keeps talking about a digital rupee and blockchain for supply chains—but never says outright if private crypto has a future. That uncertainty keeps investors cautious. But it doesn’t stop them. People still use Unocoin, Bitbns, and WazirX. They still trade on P2P platforms like LocalBitcoins. They still send crypto to friends abroad. And they still pay the 30% tax because they know the alternative—being flagged by the income tax department—is worse.

What you’ll find below are real stories from inside India’s crypto world: how people bypass banking blocks, why some exchanges got shut down, how the tax system actually works on paper and in practice, and what happens when the government decides to crack down. This isn’t theory. These are the rules people live by every day.