Cryptocurrency Legal in India: Rules, Risks, and What You Can Do in 2025

When it comes to cryptocurrency legal in India, India doesn’t ban crypto—it just doesn’t recognize it as legal tender. Also known as digital assets, cryptocurrencies like Bitcoin and Ethereum are owned and traded by millions of Indians, even though the Reserve Bank of India has never given them official approval. This isn’t a ban—it’s a gray zone. You can buy, sell, and hold crypto without breaking any law. But if you make money, the government will want its cut.

The crypto taxes India, a 30% tax on gains from selling crypto, plus a 1% TDS on every transaction. Also known as digital asset taxation, this rule came into force in 2022 and hasn’t changed since. It means even if you trade crypto for another crypto, the IRS treats it like a sale—and you owe tax on the profit. There’s no deduction for losses, no exemptions for small trades, and no way around it. If you’re earning from crypto, you’re reporting it. Meanwhile, Unocoin, one of India’s oldest and most regulated crypto exchanges. Also known as Indian crypto platform, it requires KYC, follows RBI guidelines, and lets users buy Bitcoin with UPI or bank transfer—making it the safest option for beginners. Other exchanges like CoinDCX and Bitbns operate the same way. They’re not illegal. They’re just cautious.

What’s missing? Legal protection. If a crypto exchange gets hacked or shuts down, you won’t get your money back through banking insurance or government help. There’s no FDIC for crypto in India. That’s why smart users keep only what they’re willing to lose on exchanges and store the rest in hardware wallets. The government talks about a CBDC—the digital rupee—but that’s not crypto. It’s controlled by the RBI. Real crypto? Still decentralized. Still unregulated. Still growing.

People in India aren’t waiting for permission. They’re using crypto to send money abroad, invest in global DeFi projects, or just hedge against inflation. And they’re doing it legally—by following the tax rules, using licensed exchanges, and staying informed. The next big change might come from Parliament. Until then, the rules are simple: trade, pay taxes, and protect yourself.

Below, you’ll find real guides on Indian crypto exchanges, tax traps to avoid, and how people are still making crypto work in a regulatory gray area. No hype. No fluff. Just what’s actually happening on the ground in 2025.