As of 2026, cryptocurrency is not banned in India. It is legal to buy, sell, and hold crypto assets. However, it is not recognized as legal tender like the Indian Rupee.
Current Legal Status
- Trading crypto is allowed.
- Exchanges must comply with government rules.
- Investors must follow tax regulations.
Taxation Rules
India introduced taxation on crypto profits:
- 30% tax on gains
- 1% TDS on transactions above certain limits
- No set-off of losses
This means crypto is regulated through taxation but not fully legalized as currency.
RBI and CBDC
The Reserve Bank of India has introduced its own Central Bank Digital Currency (CBDC). However, private cryptocurrencies continue to exist separately.
Important Points for Investors
- Use registered exchanges.
- Report gains in income tax returns.
- Keep transaction records.
Crypto remains legal but regulated in India in 2026.