Cryptocurrency Regulations in India (2025): Tax Rules, Legal Status & What Investors Should Know

Cryptocurrency is not a new word for Indians anymore. From college students to small business owners, people across the country have started investing in Bitcoin, Ethereum, and other digital currencies. But one thing that keeps everyone confused is—are cryptocurrencies legal in India?

In 2025, this question is more relevant than ever. The Indian government and courts are now actively working to regulate the crypto market. Whether you’re new to crypto or already invested, this guide from Chiangrai Times will help you understand where things stand today and what changes may come next.

Crypto in India: Important Highlights (2025)

Category	Status/Info
Is Crypto Legal?	Not banned, but not legal tender
Can You Trade or Invest?	Yes
Tax on Crypto Profits	30% flat rate
TDS on Crypto Transactions	1% above ₹10,000 (salaried) / ₹50,000 (business)
Can Losses Be Adjusted?	No, losses can’t be set off
Regulatory Bodies Involved	RBI, SEBI, Ministry of Finance
Court Involvement	Supreme Court urging clarity

Is Cryptocurrency Legal in India?

Cryptocurrencies like Bitcoin, Dogecoin, and Ethereum are not considered legal tender in India. This means you can’t use them like regular currency to buy products or services. But the good news is—buying, selling, and holding crypto is not illegal.

Investors are allowed to trade on platforms like CoinDCX, WazirX, and others. However, you must follow tax laws and know the risks.

Crypto Tax in India: What You Must Know

Since April 2022, the government has started taxing crypto. Here’s how it works in 2025:

• 30% tax on any profit you make from selling cryptocurrencies. It doesn’t matter if you’re a student or a professional—everyone pays the same rate.
• 1% TDS is deducted automatically by the platform during each transaction if it’s above ₹10,000 for individuals and ₹50,000 for businesses.
• Losses from crypto trading can’t be adjusted against other incomes like salary or rent.

So, if you made ₹1,00,000 profit, you’ll pay ₹30,000 in tax, and if you lose ₹50,000, there’s no refund or adjustment.

Supreme Court’s Warning on Unregulated Crypto

In a recent development, the Supreme Court of India compared unregulated cryptocurrency trading to “hawala”—an illegal form of money transfer. The court asked the central government to speed up crypto policy and protect the economy and investors.

This shows how serious the matter has become. It’s no longer just a finance topic—it’s a legal and national interest issue.

Crypto Frauds in India: Growing Concerns

India has seen a rise in crypto frauds. One major case involved ₹2,000 crore in fake crypto promises. The Delhi High Court even suggested that the CBI (Central Bureau of Investigation) should take over such big cases.

As crypto is still unregulated, many scammers take advantage. Investors are advised to be careful and only use trusted platforms.

Global Trends: Why India Needs to Act Fast

Countries like the USA, UAE, Singapore, and EU are setting strong crypto laws. They aim to use blockchain technology for finance, governance, and security.

Experts believe India should also take the lead in making clear and friendly laws. This will support innovation and protect citizens at the same time.

Final Words: Stay Safe, Stay Informed

While crypto is not banned, it still lives in a grey area. If you’re investing in crypto in India:

• Pay your taxes honestly.
• Keep records of all transactions.
• Be alert for scams and frauds.
• Stay updated with news from trusted sources like Chiangrai Times.

India may soon have a solid crypto law, but until then, play safe and stay smart.

Bookmark Chiangrai Times for the latest updates on cryptocurrency, business news, and finance guides tailored for Indian readers.