Cryptocurrency in India: Legal Status and Adoption in 2024
India’s relationship with cryptocurrency has evolved significantly, with growing adoption despite regulatory uncertainties. While the Reserve Bank of India (RBI) maintains caution, cryptocurrencies remain legal to trade, subject to a 30% tax on profits and 1% TDS on transactions. Over 15 million Indians now hold crypto assets, driven by platforms like WazirX and CoinDCX.
Popular Cryptocurrencies Accessible to Indian Investors
- Bitcoin (BTC): The original cryptocurrency dominates 47% of Indian crypto portfolios
- Ethereum (ETH): Preferred for smart contracts and NFT projects
- Binance Coin (BNB): Powers Asia’s largest crypto exchange ecosystem
- Cardano (ADA): Energy-efficient blockchain popular for long-term holdings
- Solana (SOL): High-speed network attracting DeFi enthusiasts
How to Buy Cryptocurrency in India
- Choose SEBI-registered exchange (WazirX, CoinDCX, or ZebPay)
- Complete KYC verification
- Link bank account via UPI or IMPS
- Start with stablecoins like USDT for lower volatility
Benefits of Crypto Investment in India
- 24/7 market access vs traditional stock exchanges
- Average 58% annual returns since 2020 (outperforming Sensex)
- ₹500 minimum investments through fractional buying
Risks to Consider
- 72% price volatility (3x higher than equities)
- No RBI deposit insurance coverage
- Changing regulatory landscape
Future of Cryptocurrencies in India
The government’s digital rupee initiative and proposed Crypto Bill 2023 signal growing institutional acceptance. By 2026, KPMG predicts 35 million Indian users as Web3 startups raise $2.4 billion in funding.
FAQs: Cryptocurrency in India
Q: Is crypto trading banned in India?
A: No – trading remains legal with tax compliance
Q: Which wallet is safest for Indians?
A: Hardware wallets like Ledger or BitBox02
Q: Can I use UPI for crypto purchases?
A: Yes, through RBI-approved exchanges
Q: Are crypto profits taxable?
A: 30% tax + 1% TDS applies to all gains
