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Cryptocurrency in India is a story of rapid innovation, cautious regulation, and ambitious growth. With over 107 million active crypto users—the second largest user base globally—India’s government faces a balancing act: encourage financial technology while enforcing strict compliance and protecting investors. Here’s how the regulatory landscape and market trends are shaping the future of crypto in India this year.
Cryptocurrency Regulation: Key Updates in 2025
Major Timeline Highlights
- February 2025:
Introduction of the VDA Income Tax Amendment Bill, expanding taxable assets to include NFTs and undisclosed income. The 30% tax rate on gains remains unchanged. - April 2025:
SEBI (Securities and Exchange Board of India) begins official oversight of crypto tokens resembling securities, initiating a multi-agency regulatory approach with RBI and the Ministry of Finance. - June–July 2025:
The government prepares a discussion paper with public consultation and gears up for the FSB (Financial Stability Board) peer review. Exchange platforms like Bybit impose new GST rules (18% GST on all crypto transfers including margin, spot, and derivatives).
Current Compliance and Taxation Framework
| Category | Tax Rate | TDS | Example |
|---|---|---|---|
| Investors | 30% gains | 1% if >₹10k | ₹50k profit → ₹15k tax + ₹500 TDS |
| Traders | 30% gains | 1% if >₹10k | Taxed as business income |
| Companies | N/A | 1% collected | ₹10L transaction → ₹10k TDS (company) |
- Losses can’t be set off or carried forward.
- Exchanges, wallets, and mining pools must report all transactions to tax authorities under new AML rules.
Licensing and Compliance Requirements
- Crypto exchanges and providers are required to register with FIU-IND (Financial Intelligence Unit of India) and ensure AML/KYC compliance for licensing.
- Service providers collecting, remitting 1% TDS on each eligible transaction; transaction reporting is mandatory.
Adoption & Market Value: India’s Crypto Growth
| Year | Active Users (Millions) | Market Value (USD Billion) | Revenue Forecast (USD Billion) |
|---|---|---|---|
| 2024 | ~100 | 2.6 | 3.5 |
| 2025 | 107.3 | 6.4 | 6.4 |
| 2033 | — | 13.9 (projected) | — |
- Top exchanges: CoinDCX, CoinSwitch, Mudrex
- Over 500 tokens accessible to Indian investors
- Growth propelled by mobile adoption, tech inclusion, and blockchain innovation
Trends Driving India’s Crypto Market
1. Broad Tax Base & Simple Compliance
Crypto profits are taxed at 30%, with 1% TDS on transactions. No deductions except for acquisition cost, and strict prohibitions on loss offsets.
2. Multi-Agency Oversight
SEBI leads token monitoring, RBI focuses on monetary policy, and the Ministry of Finance drives legal and tax changes. This coordination promises more robust investor protection.
3. Licensing and Transparency
Mandatory KYC/AML. Providers must report regularly to FIU-IND and obtain licensing for legal operation.
4. Global Alignment
India is preparing for FSB peer review to align local rules with global standards, indicating openness to international best practices.
5. Rising Adoption
With over 107 million users (7.37% of population) and market size forecast to surpass $6.4 billion by year-end, India is seen as a key growth engine globally.
Key Points Extracted from Source
- No reduction in 30% tax or 1% TDS despite industry requests[web].
- Exchanges now act as “reporting entities,” with requirements to report all transactions for AML and tax compliance.
- Bybit’s imposition of 18% GST on all crypto activities adds another compliance layer.
- FIU registration and AML/KYC checks standardize crypto company operations.
- Regulatory authorities (RBI, SEBI, Finance Ministry) work in tandem for oversight.
- India might further clarify regulations post-FSB review, potentially fueling even greater adoption and safeguarding the investor community.
Chart: India Crypto Market Growth (2024–2033 Projection)
| Year | Market Value (USD Billion) |
|---|---|
| 2024 | 2.6 |
| 2025 | 6.4 |
| 2033 | 13.9 (projected) |
Conclusion
India’s regulatory landscape in 2025 pushes for compliance, transparency, and investor protection with strong tax policies, multi-agency oversight, and increasing pressure for global alignment. The market is thriving, with millions of active users and revenue doubling year over year. As new regulations and international standards emerge, India is poised to play a leading role in the global digital asset economy.
If you want to succeed in India’s crypto market in 2025, stay ahead of compliance, embrace transparency, and keep an eye on regulatory developments—they are shaping a safer, bigger, and more inclusive ecosystem for all.
About the Author
Beyond his commitment to technology journalism, Ankit is a joyful gymgoer who believes in maintaining a balanced lifestyle.
