India Crypto Regulation: What You Need to Know

When working with India crypto regulation, the set of rules governing digital assets, taxes, anti‑money‑laundering (AML) requirements, and exchange licensing in the country. Also known as Indian crypto compliance, it shapes how traders, investors, and businesses can operate legally. India crypto regulation isn’t a single law; it’s a bundle of policies that evolve with market trends.

Key Pillars of Indian Crypto Rules

One pillar is crypto tax, the mandatory reporting of gains, losses, and income from digital assets under the Income Tax Act. It also includes the VDA tax (Virtual Digital Asset tax), which treats crypto profits as capital gains or business income depending on transaction frequency. Failure to file these returns can trigger penalties and audit risk. The tax regime requires every trader to maintain detailed ledgers and file Form 26AS disclosures each financial year.

Another essential component is AML compliance, the set of anti‑money‑laundering standards enforced by the Financial Intelligence Unit‑India (FIU‑IND). FIU‑IND mandates customer due‑diligence (CDD), transaction monitoring, and reporting of suspicious activity (SAR). Crypto platforms must integrate KYC screens and retain data for at least five years. In practice, AML rules push exchanges to adopt real‑name verification and transaction limits.

Getting a license to operate a crypto exchange falls under exchange registration, the approval process with the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) that grants legal status to trading platforms. The process involves submitting a detailed business plan, AML/CTF framework, and capital adequacy proof. Once approved, the exchange must submit periodic compliance reports to RBI and SEBI.

These pieces fit together like a puzzle: India crypto regulation requires you to report taxes, follow AML guidelines, and secure proper exchange registration. The three entities interact—tax filings reference AML‑verified transaction data, and licensed exchanges provide the KYC infrastructure that satisfies FIU‑IND. Ignoring any link can break the compliance chain and expose you to fines or shutdown.

Below you’ll find a curated set of articles that break down each of these areas—tax filing tips, AML best practices, licensing step‑by‑step, and real‑world case studies of Indian platforms. Dive in to see how the rules affect everyday trading and how you can stay ahead of the regulatory curve.