Crypto regulation/law in India — based on the latest developments as of January 2026:
1. No standalone comprehensive crypto law passed yet
India hasn’t enacted a full regulatory crypto law (like a “Crypto Assets Regulation Act”). Government signals show hesitation about a broad framework, fearing systemic risks and uncertainty about how to best oversee crypto within the financial system.
2. New Income Tax Bill tightening crypto reporting & classification
A draft Income Tax Bill 2025 (being debated in Parliament) includes formal definitions of virtual digital assets (VDAs) — which means crypto/ NFTs now have clearer legal status for tax and reporting purposes — and introduces mandatory reporting of crypto transactions to tax authorities by entities.
3. Stricter compliance and AML/KYC rules already being enforced
The Financial Intelligence Unit (FIU) has imposed tougher identity checks (PAN + Aadhaar + selfie + “penny-drop” bank verification) for new crypto accounts to weed out fraud and money-laundering. Exchanges are also banned from dealing with privacy-focused coins like Monero and Zcash to reduce illicit use.
4. Current tax regime remains harsh — likely to continue
The existing tax framework (30 % on gains + 1 % TDS on transactions) remains in force and no major relaxation or new incentives have been confirmed in law yet. The crypto market is pushing for rationalisation (especially on the TDS) in the 2026 Budget, but changes aren’t guaranteed.
5. Future global reporting requirements planned by 2027
By April 2027, India is preparing to adopt global standards like the OECD’s Crypto-Asset Reporting Framework (CARF) — this will expand oversight to include offshore crypto transactions and automatic exchange of information with other countries.
India hasn’t passed a big new standalone “crypto law” yet, but it’s tightening rules via tax law, reporting obligations, and AML/KYC compliance — and preparing frameworks that will bring much more oversight and global reporting over the next couple of years.