The cryptocurrency and blockchain landscape in India is full of action, debate, and promise. From the government’s careful rules to a growing trading market and big companies using blockchain, India stands at a pivotal moment.
As of 2025, the question on everyone’s mind is: What’s the Future of Crypto in India?
To answer that, let’s look at the rules, the market, the government initiatives, corporate involvement, and how the rest of the world affects this space.
The Rules: Taxes, Possible Bans, and Following the Law
India’s approach to cryptocurrencies has been one of caution rather than outright rejection. Cryptocurrencies are not banned, but they operate under a heavy regulatory burden. In 2022, the government introduced a 30% flat tax on crypto gains and a 1% Tax Deducted at Source (TDS) on transactions above a certain threshold. Compared to progressive tax systems in places like the U.S. or EU, this high rate has sparked debate, deterring some investors while formalizing the market for others.
The looming shadow of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 adds uncertainty. This proposed legislation aims to ban “private” cryptocurrencies while paving the way for an official digital currency—the Reserve Bank of India’s (RBI) digital rupee. Though the bill remains unpassed as of May 2025, its potential enactment keeps the industry on edge. The RBI, which briefly banned crypto transactions in 2018 (a decision overturned by the Supreme Court in 2020), continues to prioritize its Central Bank Digital Currency (CBDC) over decentralized cryptocurrencies.
On the compliance front, the Financial Intelligence Unit of India (FIU-IND) has stepped in to regulate the market. In March 2023, crypto exchanges were classified as “reporting entities” under the Prevention of Money Laundering Act (PMLA), requiring registration with FIU-IND. By December 2023, 28 platforms, including WazirX and CoinDCX, had complied. Even global players like Coinbase secured FIU approval in March 2025. However, the FIU cracked down on non-compliant offshore exchanges like Binance and KuCoin in December 2023, blocking their URLs and redirecting traffic to Indian platforms. These moves signal a push for legitimacy—but within strict boundaries.
The Market: Growing Fast Despite Problems
Despite regulatory challenges, India’s crypto market is thriving. Projections estimate the market will reach US$6.4 billion by 2025, fueled by over 15 million active traders. A June 2023 survey found that roughly 20% of Indians own cryptocurrencies, drawn by curiosity, long-term investment potential, and portfolio diversification.
Trading volumes have surged, particularly in perpetual futures—a type of derivative with no expiration date, allowing traders to hold positions indefinitely with leverage. This contrasts with traditional futures (like those for the Nifty index), making it a popular tool for both seasoned and novice traders. Platforms like WazirX and CoinDCX have reported spikes in deposits and user growth, especially after the FIU’s actions against offshore exchanges.
Challenges persist—security risks, market volatility, and the threat of a ban—but the market’s resilience is striking. India’s crypto ecosystem is proving it can adapt and grow, even under pressure.
Government Support for Blockchain Technology
While cryptocurrencies face scrutiny, blockchain technology enjoys robust government support. The Centre of Excellence in Blockchain Technology, launched by the Ministry of Electronics and Information Technology (MeitY), is driving innovation through the National Informatics Centre. Projects like digitizing land records on the Avalanche blockchain aim to enhance transparency and efficiency in governance.
Also Read – 5 Benefits of Cryptocurrency for Governments Around the World
The National Strategy on Blockchain, unveiled in December 2021, outlines a vision to integrate blockchain into e-governance, healthcare, agriculture, and finance by 2027. State-level efforts, such as Maharashtra’s Blockchain Sandbox and Telangana’s blockchain hub ambitions in Hyderabad, reinforce this commitment. In September 2024, the government launched the Vishvasya-Blockchain Technology Stack, a Blockchain-as-a-Service (BaaS) platform to bolster public services.
The message is clear: blockchain is a priority, even if cryptocurrencies remain contentious.
Corporate Interest: Jio Coin as a Case Study
Corporate India is also embracing blockchain. In early 2025, Reliance Jio launched Jio Coin, a blockchain-based reward token integrated into its ecosystem. Unlike speculative cryptocurrencies, Jio Coin isn’t tradable—it’s earned through activities like browsing on JioSphere or using the MyJio app and redeemed for services like mobile recharges or discounts. Built on Polygon’s blockchain, it’s more of a loyalty program than a cryptocurrency.
Jio Coin reflects a broader trend: blockchain applications can thrive in India within regulated, corporate-led frameworks, aligning with government priorities.
Global Influence: The U.S. Factor
Globally, the crypto landscape is shifting—especially in the U.S. under President Donald Trump. As of May 2025, Trump has positioned the U.S. as a crypto leader, promising to make it the “crypto capital of the planet.” His administration has formed a cryptocurrency working group, explored a national digital asset stockpile, and appointed pro-crypto figures like Paul Atkins as SEC chair. In April 2025, Trump nullified expanded IRS crypto broker rules, further boosting the industry.
India’s cautious stance contrasts sharply with this pro-crypto shift. Yet, the U.S.’s moves could pressure India to rethink its policies, lest it fall behind in the global digital asset race.
The future of crypto in India faces significant hurdles:
Regulatory Uncertainty
When the rules themselves might change, it makes planning hard. Investors don’t know if the government will suddenly ban private cryptocurrencies. On top of that, a flat 30% tax on all gains and a 1% TDS on transactions over a threshold can cut into profits. Because these rules could be tightened or relaxed at any time, some people worry about putting their money into crypto in India.
Security Risks
Crypto markets have seen major hacks where thieves steal users’ coins. Fraudsters also set up fake exchanges or scam Initial Coin Offerings (ICOs). And because crypto transactions can be anonymous, criminals sometimes use them to launder money. To keep people safe, exchanges need strong security systems, regular audits, and clear steps for catching and punishing bad actors.
Investor Sentiment
High taxes and upfront TDS mean traders give a big slice of their profits to the government. That cools down excitement—some people prefer markets where they keep more of their gains. However, having clear tax rules and required exchange registration does build trust. When traders see that platforms like WazirX and CoinDCX follow the law, they feel more confident that the market is genuine and not just a risky gamble.
Why There’s So Much Opportunity?
Blockchain Innovation
When the government supports blockchain projects, it can make public services faster and safer. For example, putting land records on a blockchain means they can’t be tampered with. That makes buying or selling property smoother. In health care, blockchain could secure patient records so only the right people can see them. These kinds of projects help citizens trust and use government services more easily.
Market Potential
Experts say India’s crypto market could grow to about US$6.4 billion by 2025. That shows there is plenty of room for new businesses, apps, and jobs. Startups can build new tools for trading, wallets, or payment systems. Investors might back these startups, creating more innovation. As more people learn about crypto, the market can keep expanding, bringing in fresh ideas and talent.
Global Alignment
Around the world, many countries are making rules that support cryptocurrencies and blockchain. If India watches these changes and adapts its own laws wisely, it can stay part of the global trend. For instance, if India balances safety with clear rules, it can attract foreign investment and blockchain research. By working with international standards, Indian developers and companies can join global projects and compete on the world stage.
The Bottom Line
So, does crypto have a future in India? Yes—but it’s a qualified yes. Private cryptocurrencies may face restrictions or even a ban, but the broader ecosystem—blockchain technology and regulated tokens—seems set to flourish. The government’s blockchain enthusiasm, corporate adoption like Jio Coin, and a resilient trading market suggest that digital assets won’t disappear from India.
That future, however, will be distinctly Indian: tightly controlled, with an emphasis on blockchain over speculative cryptocurrencies. As global trends—especially in the U.S.—favor crypto, India may adjust its approach to stay competitive. The question isn’t “if” crypto has a future in India, but “how”—how it adapts to local needs and regulations, and how India positions itself in the digital economy.
India could emerge as a blockchain leader, provided it balances caution with innovation. The momentum is there; the path forward depends on execution.