Policy Reference

India

Explore India’s crypto laws, including exchange rules, taxes, AML compliance, RBI policy, and digital asset regulation.

Financial Intelligence Unit India (FIU-IND)
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5 law profiles

Law / Bill
Draft Intro Committee Passed Enacted Effective
India Income-tax Act VDA Tax and TDS Regime ITA 1961 ss. 2(47A), 115BBH, 194S; ITA 2025 ss. 2(111), 194, 393 Effective Details Draft Draft: Completed Intro Introduced: Completed Committee In committee: Completed Passed Passed: Completed Enacted Enacted: Completed Effective Effective: Current

Income-tax Act VDA tax/TDS regime: 1961 Act ss. 2(47A), 115BBH, 194S; 2025 Act ss. 2(111), 194, 393

India’s VDA tax/TDS regime applies a 30% tax to VDA transfer income and 1% TDS on resident transfer consideration, now carried into the Income-tax Act, 2025.

Last action: Apr 1, 2026 - Income-tax Act 2025 transition

Profile Income-tax Act, 1961 — section 115BBH and section 2(47A)
India PMLA VDA Service Provider AML/CFT Regime PMLA 2002; S.O. 1072(E); F. No. P-12011/12/2022-ES Cell-DOR Effective Details Draft Draft: Completed Intro Introduced: Completed Committee In committee: Completed Passed Passed: Completed Enacted Enacted: Completed Effective Effective: Current

Prevention of Money Laundering Act, 2002; VDA service provider AML/CFT notification and FIU guidelines

India PMLA regime treats VDA service providers as FIU-IND reporting entities for AML/CFT/CPF, covering exchange, transfer, custody, issuer services, KYC, records, reporting and Travel Rule controls.

Last action: Mar 30, 2026 - Lok Sabha answer confirmed 54 VDA SPs registered with FIU-IND as of Mar. 9, 2026 and 53 non-compliant VDA SPs directed for takedown.

Profile Gazette Notification S.O. 1072(E)
India FIU-IND AML/CFT Guidelines for VDA Service Providers FIU-IND VDA Guidelines; S.O. 1072(E) Effective Details Draft Draft: Completed Intro Introduced: Completed Committee In committee: Completed Passed Passed: Completed Enacted Enacted: Completed Effective Effective: Current

AML & CFT Guidelines for Reporting Entities Providing Services Related to Virtual Digital Assets

FIU-IND guidance applies India’s PMLA AML/CFT/CPF obligations to VDA service providers, including FIU registration, KYC/CDD, STR reporting, record retention, sanctions screening and Travel Rule controls.

Last action: Jan 8, 2026 - Updated VDA guidelines listed

Profile Updated FIU-IND VDA AML/CFT Guidelines
Internet and Mobile Association of India v. Reserve Bank of India W.P.(C) Nos. 528/2018 & 373/2018 Effective Details Draft Draft: Completed Intro Introduced: Completed Committee In committee: Completed Passed Passed: Completed Enacted Enacted: Completed Effective Effective: Current

Internet and Mobile Association of India v. Reserve Bank of India, Writ Petition (Civil) No. 528 of 2018 with W.P. (Civil) No. 373 of 2018

India’s Supreme Court set aside RBI’s 2018 virtual-currency banking circular on proportionality grounds, while recognizing RBI’s power to regulate crypto-related risks.

Last action: May 31, 2021 - RBI clarifies due-diligence position

Profile Supreme Court judgment in IAMAI v. RBI
Inactive 1
RBI Circular on Prohibition on Dealing in Virtual Currencies (2018) RBI/2017-18/154; DBR.No.BP.BC.104/08.13.102/2017-18 Struck down Details Draft Draft: Completed Intro Introduced: Completed Committee In committee: Completed Passed Passed: Completed Enacted Enacted: Inactive Effective Effective: Pending

Prohibition on dealing in Virtual Currencies (VCs)

The RBI’s Apr. 6, 2018 circular restricted RBI-regulated entities from dealing in or facilitating virtual currency transactions. It took effect immediately with a three-month exit period, but was set aside by India’s Supreme Court on Mar. 4, 2020.

Last action: May 31, 2021 - RBI customer due diligence notice

Profile Prohibition on dealing in Virtual Currencies (VCs)

Information is for general purposes only and not legal advice. See full disclaimer.