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BtcMedia Research · Quarterly

State of Indian crypto regulation

Every official step that shaped crypto in India, with the primary document behind each. Review period: Q4 2026 (October–December). Updated .

Where things stand

Legal status
Buying, selling and holding crypto is not banned. There is no crypto-specific law or licensing regime.
Banking
Banks may serve exchanges since the March 2020 Supreme Court ruling.
Tax
30% plus 4% cess on gains, no loss set-off, 1% TDS on sales — now under the Income-tax Act, 2025.
AML
Exchanges serving Indians must register with FIU-IND as PMLA reporting entities; 54 were registered as of 9 March 2026.

Timeline

Jump to: 2013 · 2017 · 2018 · 2020 · 2022 · 2023 · 2024 · 2026

  1. · Banking

    RBI first cautions users of virtual currencies

    The RBI warns users, holders and traders of virtual currencies, including Bitcoin, about financial, operational, legal, customer-protection and security risks, and says it is examining the issue under existing law.

    Source: RBI press release 2013-2014/1261

  2. · Banking

    RBI repeats its caution

    The RBI says it has not licensed or authorised any entity to deal in Bitcoin or any virtual currency, so anyone dealing in them does so at their own risk.

    Source: RBI press release 2016-17/2054

  3. · Banking

    RBI bars regulated entities from dealing with crypto

    Circular DBR.No.BP.BC.104 tells banks and other regulated entities to stop dealing in or facilitating virtual currencies and to exit existing relationships within three months.

    Source: RBI notification, 6 Apr 2018✓ link checked 22 Oct 2026

  4. · Courts

    Supreme Court sets aside the RBI circular

    In Internet and Mobile Association of India v RBI, the court quashes the 2018 circular on proportionality grounds, reopening bank access for exchanges.

    Source: Judgment, 2020 INSC 264

  5. · Tax

    Budget 2022 proposes the VDA tax regime

    The Finance Minister proposes a 30% tax on income from transferring virtual digital assets, no set-off of losses and 1% TDS above a threshold (para 131).

    Source: Budget Speech 2022-23

  6. · Tax

    30% tax on VDA income takes effect (section 115BBH)

    A flat 30% (plus cess) on gains from FY 2022-23, with only the cost of acquisition deductible and no loss set-off.

    Source: Section 115BBH, Income Tax Department

  7. · Tax

    1% TDS on crypto transfers begins (section 194S)

    Payers must deduct 1% TDS on consideration for transferring a VDA above the annual thresholds.

    Source: Section 194S, Income Tax Department

  8. · AML

    Crypto businesses brought under the PMLA

    Notification S.O. 1072(E) makes VDA exchange, transfer, custody and related services "reporting entities", which must register with FIU-IND and follow anti-money-laundering rules.

    Source: Gazette of India, S.O. 1072(E)

  9. · Enforcement

    FIU-IND notices to nine offshore exchanges

    Show-cause notices under section 13 PMLA to Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex, and a request to MeitY to block their URLs. FIU-IND said 31 VDA service providers had registered by then.

    Source: PIB, Ministry of Finance, 28 Dec 2023

  10. · Market

    OKX announces it will stop serving India

    OKX said it would end services for Indian users, citing local regulations.

    Source: CoinDesk, 21 Mar 2024✓ link checked 22 Oct 2026

  11. · Enforcement

    FIU-IND penalises KuCoin operator ₹34.5 lakh

    Order against Peken Global Ltd for PMLA non-compliance.

    Source: FIU-IND order✓ link checked 22 Oct 2026

  12. · Enforcement

    FIU-IND penalises Binance ₹18.82 crore

    Order for PMLA non-compliance by the Binance entities.

    Source: FIU-IND order✓ link checked 22 Oct 2026

  13. · AML

    Government lists 54 registered VDA service providers

    Replying in the Lok Sabha, the government lists 54 VDA service providers registered with FIU-IND as of 9 March 2026 (Annexure I) and says no public registration portal exists. Annexure II lists 53 platforms whose apps/URLs were directed for takedown.

    Source: Lok Sabha Unstarred Question 5805✓ link checked 22 Oct 2026

  14. · Tax

    Income-tax Act, 2025 comes into force

    The new Act replaces the 1961 Act. The crypto rules carry over: the 30% rate now sits in section 194 and the 1% TDS in section 393.

    Source: Section 393, Income Tax Department

FAQ

Is crypto legal in India in 2026?

Yes, holding and trading crypto is legal, but it is not legal tender and there is no licensing regime. It is taxed at 30% plus cess with 1% TDS, and exchanges must register with FIU-IND under the PMLA.

What changed for crypto on 1 April 2026?

The Income-tax Act, 2025 replaced the 1961 Act. The rates did not change: the 30% VDA tax moved to section 194 and the 1% TDS to section 393.

How often is this timeline updated?

Every quarter, and sooner when a major official document is published. Current review: Q4 2026 (October–December).

Related: Is crypto legal in India? · exchanges and FIU-IND status · crypto tax calculator · Bitcoin on this day

Not legal or tax advice.

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Updates to this page

Last updated . We log every material change. Spot an error? See our corrections policy.

  1. Extended back to 2013 (RBI cautions of Dec 2013 and Feb 2017) and added filters by topic and year jumps.
  2. Q4 2026 edition published: 12 sourced milestones from the RBI 2018 circular to the Income-tax Act, 2025.