
Crypto is legal to buy and hold in India but carries one of the world's harshest tax regimes: a flat 30% on gains plus 1% TDS deducted on every trade. UPI makes funding instant.
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Crypto is legal to own and trade in India, though it is not legal tender and remains unregulated as an asset class. Exchanges must register with the Financial Intelligence Unit (FIU-IND); after a 2024 enforcement push, Binance and others registered to legally serve Indian users alongside local platforms CoinDCX and WazirX.
India's tax rules are the main barrier: a flat 30% tax on crypto gains (no loss offset) plus a 1% Tax Deducted at Source (TDS) on every transaction above small thresholds, which steadily erodes capital for active traders. Funding is fast and cheap through UPI and IMPS bank transfers, though banking access to crypto can be intermittent. Many Indians also use P2P markets to navigate banking friction.
Yes, buying and holding crypto is legal, though it isn't legal tender and stays unregulated as an asset. Exchanges must register with FIU-IND. The main constraint is tax, not legality.
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