India’s Cryptocurrency Landscape in 2025: An Overview
The cryptocurrency market in India has significantly evolved by 2025, showcasing a balance between cautious regulation and rapid adoption. While cryptocurrencies like Bitcoin remain outside the realm of legal tender, they operate within a regulatory grey area defined by new tax measures, compliance frameworks, and evolving guidelines. With over 107 million Indians engaging with crypto assets, the government is aiming to create a system of innovation alongside oversight.
Timeline of Key Crypto Updates in India for 2025
The following are significant events and regulatory updates that marked India’s crypto journey in 2025:
July 7, 2025: Bybit Imposes 18% GST
Leading crypto exchange Bybit introduced an 18% GST on various crypto transactions such as spot and margin trading, derivatives, and staking. The platform also terminated select legacy products and services by July 9, 2025.
June 2025: Discussion Paper on Cryptocurrency
The Indian government announced the launch of a discussion paper to formulate a regulatory framework for cryptocurrency. The paper aims to include feedback from stakeholders like financial institutions, legal experts, crypto companies, and the general public.
May 22, 2025: FSB Peer Review Preparation
In preparation for the Financial Stability Board (FSB) review in October, India aligned its crypto regulations with global standards, a step viewed as critical for the international crypto economy.
April 1, 2025: SEBI Takes Charge
The Securities and Exchange Board of India (SEBI) began monitoring crypto tokens resembling securities. A multi-agency model now includes SEBI, the Reserve Bank of India (RBI), and the Finance Ministry to ensure efficient oversight.
February 13, 2025: VDA Income Tax Amendment Bill
The Virtual Digital Asset (VDA) Income Tax Amendment Bill expanded the tax scope to include NFTs and undisclosed income. However, India’s strict 30% tax rate on crypto earnings remained unchanged.
February 10, 2025: Exchanges Become Reporting Entities
Under new regulations, crypto exchanges, wallets, and mining pools were declared “reporting entities.” They are now required to report all transactions to tax authorities according to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) guidelines.
Impact of Regulation on Indian Crypto Users
India’s cryptocurrency regulations in 2025 aim to establish a compliant, innovation-friendly ecosystem. However, strict taxes (30% + 1% TDS) and mandatory transaction reporting have posed challenges for traders and investors.
For example, if you buy Bitcoin at ₹2.72 lakh and sell it at ₹8.72 lakh, a profit of ₹6 lakh will incur ₹1.8 lakh tax along with ₹6,000 as TDS.
What Lies Ahead?
As India gears up for the FSB review in October 2025, industry experts predict greater regulatory clarity. This could open the doors for increased global investment, fueling mass adoption, and positioning India as a key player in the $7 trillion global digital economy.
Stay Informed and Ahead of the Curve
With rapid changes in the cryptocurrency landscape, keeping up with the latest news is critical. Subscribe to reliable resources like Bybit’s educational resources or blockchain-focused newsletters for breaking news, insights, and expert analysis. Ensure you’re well-prepared to navigate the crypto world in India and beyond.
