Are Cryptocurrencies Legal In India?

Cryptocurrencies as a payment medium are not regulated or issued by any central authority in India. There are no guidelines laid down for sorting disagreements while dealing with cryptocurrency. So, if you wish to trade crypto, do it at your own risk. 

Nirmala Sitharaman, the Finance Minister of India, initiated a tax on digital assets that has increased the discussion on the legality of cryptocurrency in the country. 

Given the stance of the Reserve Bank of India (RBI) Governor and other key ministers from time to time, it can be safe to state that cryptocurrency is not banned in India. Until 2022, cryptocurrency was unregulated in the country. This changed after the government set forth a 30% and 1% tax on profits from cryptocurrencies and tax deducted at source, respectively, in the Union Budget of 2022. This event marked the Indian government’s official cryptocurrency regulation.