What is Bhartiya Cryptocurrency?
Bhartiya cryptocurrency refers to the rapidly evolving landscape of digital assets within India’s borders. As the world’s fifth-largest economy with over 1.4 billion people, India represents one of cryptocurrency’s most dynamic markets despite regulatory uncertainties. The term encapsulates both global cryptocurrencies adopted by Indian investors and homegrown blockchain projects tailored for local needs.
India’s crypto journey began in 2013 but gained mainstream traction during the 2020-2021 bull run. With over 115 million crypto users as of 2023 (TripleA data), India ranks among the top three nations for crypto adoption. This explosive growth stems from tech-savvy youth, remittance innovation needs, and a search for alternative investments amid inflation.
India’s Crypto Regulatory Landscape
The Reserve Bank of India (RBI) initially banned banking support for crypto exchanges in 2018, overturned by the Supreme Court in 2020. Current regulations include:
- 30% Tax on Profits: Implemented April 2022, no loss deductions allowed
- 1% TDS on Transactions: Deducted at source for trades over ₹10,000
- Anti-Money Laundering Rules: Mandatory KYC for exchanges since March 2023
- Digital Rupee Pilot: RBI’s CBDC launched in 2022 for wholesale and retail use
While the government explores a comprehensive crypto bill, the Finance Ministry maintains cryptocurrencies aren’t legal tender but allows trading as virtual digital assets (VDAs).
Top Cryptocurrencies in the Indian Market
Indian investors favor these digital assets:
- Bitcoin (BTC): The dominant choice for long-term holdings
- Ethereum (ETH): Preferred for smart contracts and staking
- Polygon (MATIC): Mumbai-based layer-2 solution with massive adoption
- Ripple (XRP): Popular for cross-border payments
- Indigenous Projects: Includes Matic (now Polygon), Instadapp, and CoinDCX’s ecosystem tokens
How to Buy Cryptocurrency in India
Follow these steps to start investing:
- Choose SEBI-registered exchanges like CoinDCX, WazirX, or ZebPay
- Complete KYC verification with PAN and Aadhaar
- Deposit INR via UPI, IMPS, or bank transfer
- Purchase crypto directly or through P2P markets
- Transfer to private wallets like Coinbase Wallet for added security
Always verify exchange security features and insurance coverage before trading.
Future Outlook for Crypto in India
Key developments shaping India’s crypto future:
- G20-driven global regulatory frameworks
- Expansion of RBI’s digital rupee for retail payments
- Blockchain integration in land registries and supply chains
- Growing institutional adoption via SEBI-approved funds
- Web3 startups attracting $700M+ in venture funding (NASSCOM data)
Industry experts predict clearer regulations by 2025 could position India as a global Web3 innovation hub.
Frequently Asked Questions
Q: Is cryptocurrency legal in India?
A: Yes, trading is legal with tax obligations, though not recognized as legal tender. Exchanges operate under AML/CFT guidelines.
Q: How are crypto profits taxed?
A: 30% tax on gains without deductions, plus 1% TDS on transaction value. Losses can’t offset other income.
Q: What’s the best crypto exchange for Indians?
A: CoinDCX and WazirX lead in security and liquidity. Always verify registration status on the Financial Intelligence Unit (FIU) website.
Q: Can I use crypto for everyday purchases?
A: Not widely accepted. The digital rupee (e₹) is RBI’s solution for digital payments, while private cryptos remain investment assets.
Q: How does India’s crypto adoption compare globally?
A: India ranks #1 in Chainalysis’ 2023 Global Crypto Adoption Index, driven by grassroots P2P usage and institutional growth.
