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    Lesson 4

    The Indian Crypto Landscape

    11 min read

    Understand the major Indian crypto exchanges, regulatory status, and how Indians access the crypto market.

    Foreign ExchangeBinance · Coinbase · KrakenUPI PaymentBLOCKED — RBI/SEBI restricted UPI for offshore platforms✗ No customer support in India✗ Tax reporting unclear · Risky for beginnersVSIndian ExchangeWazirX · CoinDCX · Mudrex · GiottusUPI Payment✓ KYC verified · INR deposits · Indian tax reports✓ Customer support in Hindi / English✓ Auto TDS deduction · SEBI-compliant
    Since 2022, Indian banks and UPI networks have blocked payments to foreign crypto platforms. Use a SEBI-compliant Indian exchange for seamless INR deposits and proper tax reporting.
    India's Crypto Regulatory FrameworkCrypto is NOT banned in India — but it is strictly taxed and monitored30%Flat Tax on ProfitsNo deductions allowedNo offset against other lossesPaid on each realized gain1%TDS on Every SellDeducted at source by exchangeClaimable in ITR as advance taxApplies to transfers tooKYCMandatory on ExchangesAadhaar + PAN requiredVideo KYC on most platformsHigher limits after full KYCBudget 2022 legalized VDA taxation · Finance Act 2023 added TDS · Regulation continues to evolve
    Crypto is legal in India but classified as Virtual Digital Assets (VDA). Profits face a flat 30% tax with no expense deductions, and exchanges automatically withhold 1% TDS on every sell or transfer.

    Key Takeaways from this Lesson

    1. 1WazirX, CoinDCX, ZebPay, and CoinSwitch are the major Indian exchanges — all require KYC.
    2. 2Crypto is legal in India but not legal tender — gains are taxed at 30% with 1% TDS.
    3. 3All Indian exchanges require PAN + Aadhaar KYC before you can deposit or trade.
    4. 4Some banks informally restrict crypto transactions despite the Supreme Court overturning the 2018 RBI circular.
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