Crypto Restrictions in India: What’s Banned, What’s Not, and How People Still Trade

When you hear crypto restrictions in India, rules that limit how people buy, sell, or use digital assets within the country. Also known as Indian cryptocurrency regulations, it’s not a full ban—but it’s close enough to make most people nervous. The Reserve Bank of India never made crypto illegal, but for years, banks refused to serve crypto businesses. That pushed trading underground. Today, you can still buy Bitcoin or Ethereum, but the government treats it like a risky gamble, not money.

What’s really happening? Millions of Indians use P2P crypto, peer-to-peer platforms where users trade directly without banks. Also known as cryptocurrency trading via cash or UPI, it’s how people bypass banking blocks. Platforms like Binance and Bybit dominate because they let you pay with mobile wallets, cash deposits, or even gift cards. This isn’t a glitch—it’s the default way crypto moves in India. And it’s not just speculators. Freelancers, small business owners, and students use it to get paid in USD, avoid inflation, or send money home. Meanwhile, the crypto tax India, a 30% tax on gains plus 1% TDS on every trade. Also known as Indian crypto income rules, it’s one of the strictest in the world. The government isn’t trying to stop crypto—it’s trying to track every dollar. That’s why exchanges now require KYC. But if you’re trading on P2P with cash? There’s no paper trail. That’s the real tension: the law says one thing, reality says another. You won’t find a single official guide that explains how to stay safe under these rules. Most advice is either from banks scared of liability or influencers pushing shady coins. The truth? You can trade legally if you report taxes. But if you don’t, you’re gambling with fines, audits, or worse.

What’s missing from headlines? The fact that crypto in India isn’t about speculation anymore. It’s about survival. With inflation eating savings and salaries stuck in rupees, people are using Bitcoin as a store of value. They’re using USDT to pay for overseas services. They’re using decentralized exchanges to avoid bank freezes. The restrictions didn’t kill crypto—they made it smarter. And now, the government is slowly realizing it can’t stop what’s already everywhere.

Below, you’ll find real reviews of platforms Indians actually use, breakdowns of tax loopholes, and stories from people who’ve navigated the gray zones. No fluff. No hype. Just what works—and what gets you flagged.