Crypto Compliance in India: Rules, Risks, and What You Need to Know

When it comes to crypto compliance in India, the set of legal and regulatory requirements that govern how individuals and businesses handle cryptocurrency. Also known as cryptocurrency regulation India, it’s not just about taxes—it’s about whether you can even bank your gains. Unlike places like the EU or Japan, India doesn’t have a clear, unified crypto law. Instead, you’re dealing with a patchwork of tax rules, banking restrictions, and sudden regulatory shifts that can turn a legal trade into a legal risk overnight.

The RBI crypto policy, the Reserve Bank of India’s stance on cryptocurrency, which has shifted from outright bans to cautious tolerance. Also known as RBI crypto guidelines, it’s the invisible hand behind why many Indian exchanges struggle to keep bank accounts open. While the Supreme Court overturned the 2018 banking ban in 2020, banks still treat crypto businesses like high-risk clients. Many crypto traders report frozen accounts, delayed withdrawals, or sudden account closures with no explanation. If you’re running a business that accepts crypto, you’re walking a tightrope between innovation and compliance.

crypto tax India, the system that treats cryptocurrency as a taxable asset, with capital gains taxed at 30% and a 1% TDS on every trade. Also known as Indian crypto taxation, it’s one of the strictest in the world—no exemptions, no deductions, no leniency. Even if you swap one coin for another, the IRS-style rules treat it as a sale. That means every trade triggers a tax event. The government tracks this through exchange data sharing and blockchain analysis tools. If you didn’t report your 2023 trades, you’re already behind. And yes, they’re auditing.

There’s also the matter of crypto legal India, the murky zone where owning crypto isn’t illegal, but operating a platform, mining, or accepting payments can land you in legal trouble. Also known as crypto legality India, it’s a world where the law doesn’t say "you can’t," but the system makes it nearly impossible to do it safely. No licensed crypto exchanges operate under full regulatory approval. No clear licensing path exists for DeFi projects. And if you’re running an airdrop or token sale from India, you’re risking prosecution under the Prevention of Money Laundering Act.

What does this mean for you? If you’re holding crypto, keep records. If you’re trading, assume every swap is taxable. If you’re building something, don’t assume you’re safe just because no one’s come after you yet. The government has already frozen over $150 million in crypto assets in neighboring countries—India’s enforcement is just getting started. The posts below show you exactly how others have been caught, how they fought back, and what loopholes still exist—if you’re smart enough to use them.