Crypto Legality in India: What’s Allowed, What’s Banned, and Where to Trade Safely

When it comes to crypto legality in India, the legal status of cryptocurrency in India has shifted from outright bans to a complex, evolving regulatory landscape. Also known as Indian crypto regulations, it’s not about whether crypto is legal—it’s about how tightly it’s controlled, taxed, and monitored. The Reserve Bank of India once tried to block banks from serving crypto businesses, but that ban was overturned by the Supreme Court in 2020. Since then, the government hasn’t made crypto illegal—but it hasn’t made it official either.

Today, crypto exchanges in India, platforms where users buy, sell, and trade digital assets. Also known as Indian crypto trading platforms, they operate in a gray zone. You can use WazirX, CoinDCX, or ZebPay without fear of arrest, but you’re not protected by consumer laws. These platforms follow KYC rules, report transactions to the Income Tax Department, and freeze accounts if they detect suspicious activity. That’s not regulation—it’s surveillance with a smile. Meanwhile, crypto taxation in India, the 30% tax on crypto gains and 1% TDS on every trade. Also known as Indian crypto tax rules, it’s one of the strictest in the world. You pay tax even if you lost money. No deductions. No offsets. Just a flat cut, every time you trade.

What’s banned? Anything that looks like a bank or a financial product. No crypto-backed loans from unlicensed firms. No staking rewards offered as interest. No unregistered token sales. The SEC India crypto enforcement team (yes, they’re watching) has started cracking down on platforms that promise returns without licenses—just like they did in the U.S. with Binance and Coinbase. If a project says it’s "regulated in India," it’s probably lying. There’s no such thing as an Indian crypto license yet. The government is still deciding whether to ban it, regulate it, or launch its own digital rupee and call it a day.

So where does that leave you? You can still trade. You can still hold. But you’re on your own. No FDIC insurance. No chargebacks. No recourse if a platform vanishes—like BTRL or BITEJIU, which showed up with flashy ads and disappeared with deposits. Stick to platforms that publish their KYC policies, have real customer support, and don’t promise 1000x returns. And always, always keep records. The taxman isn’t asking—he’s auditing.

Below, you’ll find real reviews of exchanges, deep dives into scams hiding as coins, and clear breakdowns of what’s actually legal in India right now. No fluff. No hype. Just what you need to know before you send another transaction.