Cryptocurrency in India: A Historical Perspective
The popularity of cryptocurrency in India surged following the demonetization of INR 500 and INR 1000 notes in 2016. This move triggered widespread adoption of digital payment systems and sparked increased interest in cryptocurrencies. However, the Reserve Bank of India (RBI) has repeatedly cautioned against their use and advocated for a ban on cryptocurrencies.
India has also topped Chainalysis’ Global Crypto Adoption Index for three years in a row, according to the 2025 edition.
Current Regulatory Landscape in India
India presently lacks specific legislation governing virtual currencies. Nevertheless, the Income Tax Department has amended its laws to enable the taxation of Virtual Digital Assets (VDAs), which encompass cryptocurrencies. The Indian government has also declared that cryptocurrencies are not considered legal tender and has advised citizens against engaging in transactions involving them.
In March 2023, the Indian government extended money laundering laws to encompass cryptocurrencies. Since then, crypto exchanges, custodians and transfer services are reporting entities under the Prevention of Money Laundering Act, and about 49 exchanges had registered with the financial intelligence unit by FY 2024-25.
Enforcement followed. In October 2025, India’s financial intelligence unit (FIU-IND) issued notices to 25 offshore exchanges that were serving Indian users without registering under the anti-money laundering law, and asked internet providers and app stores to block their websites and apps.
Officials do not speak with one voice. RBI Governor Sanjay Malhotra described the central bank’s stance as “a very cautious approach towards crypto” in November 2025 and said the final decision lies with the government. Commerce Minister Piyush Goyal called the government neutral on crypto in October 2025. In July 2026, Reuters-reported internal RBI documents showed the central bank leaning toward restrictions, while the tax department found that fewer than a quarter of those who made crypto transactions in the financial year ending March 2023 had declared them.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021
The Indian government is currently reviewing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The proposed bill aims to establish a favorable framework for the creation of digital currency issued by the RBI. If enacted, the bill would provide investors with a six-month window to liquidate their cryptocurrency holdings without penalty. Notably, India would be the first major economy to impose a ban on cryptocurrency possession, as other countries have primarily focused on banning mining and trading activities.
India’s central bank is also building its own digital currency. RBI’s retail pilot of the digital rupee (e₹) has been live since December 2022, and as of October 1, 2026 both the retail and wholesale pilots were still running, with 19 banks offering e₹ wallets.
The National Strategy on Blockchain
In December 2021, an updated version of the National Strategy on Blockchain was released, emphasizing the development of a nationwide blockchain infrastructure distributed across the country. In September 2024, the Ministry of Electronics and IT launched the National Blockchain Framework, which includes the Vishvasya blockchain stack offering blockchain as a service.
Taxes on Crypto in India
Crypto gains are taxed at a flat 30% plus 4% cess, and a 1% tax is deducted at source on the gross transaction value. Losses can’t be set off against other income or carried forward. Trades are reported in Schedule VDA of the tax return, and foreign crypto holdings go in Schedule FA (India Policy Hub). The 2026 budget left this regime unchanged.
How to Buy Crypto in India on ChangeNOW
ChangeNOW is a legally operating cryptocurrency exchange platform in India. To purchase crypto on ChangeNOW, you can complete the process without creating an account or undergoing registration. Here's a simple step-by-step guide:
- Visit the ChangeNOW website.
- Select the cryptocurrency you wish to buy and specify the desired amount.
- Provide your wallet address, where you want to receive the purchased crypto.
- Confirm the transaction and choose from the available payment methods to complete the payment.
- The purchased cryptocurrency will be sent to your designated wallet address.
Conclusion
The Indian government has taken a cautious approach to cryptocurrency regulation, but recent developments suggest that it may soon pass legislation. In the meantime, platforms like ChangeNOW provide a legal and accessible way for Indians to buy and exchange cryptocurrencies. It is important to keep an eye on any changes in regulations and to educate oneself on the risks and benefits of investing in cryptocurrencies.
Disclaimer: Cryptocurrency investment is subject to high market risks and volatility. This article does not constitute investment advice, and readers should do their own research before investing in any cryptocurrency.
