India — crypto regulation

Status: partial · Last reviewed 2026-11-05

No comprehensive crypto law; regulation remains a patchwork. VDA service providers must register with FIU-IND under the PMLA (2023) and FIU-IND continues to act against unregistered offshore platforms (non-compliance notices to 15 providers in Sep 2026). The 30% tax on VDA gains and 1% TDS continue unchanged under the new Income-tax Act 2025, in force from 1 Apr 2026. The government's crypto discussion paper is still unpublished; in Jul 2026 the RBI told Parliament's Standing Committee on Finance that VDAs should not be legalised and that prohibition remains an option, while the committee has called for a dedicated regulatory framework with interim self-regulation. The RBI is expanding the e-rupee through welfare pilots and, with SEBI, launched a tokenised corporate bond pilot settled in wholesale CBDC (Sep 2026).

Legislation

• Income-tax Act 2025 — VDA tax and TDS provisions (in force 1 Apr 2026) (2026)
• PMLA 2002 — VDA Notification (7 Mar 2023) (2023)
• FIU-IND — VASP Registration & Compliance Framework (2024)
• Finance Act 2022 — Section 115BBH (30% VDA Tax) (2022)
• Finance Act 2022 — Section 194S (1% TDS) (2022)
• Finance Act 2022 — RBI Act Amendment (CBDC basis) (2022)
• GST Council Clarification — 18% on Crypto Fees (2025)