India’s crypto market stays resilient as tax and reporting rules tighten
India’s estimated 70–90 million crypto investors are navigating 1% TDS, 30% gains tax and expanding compliance requirements. Industry data says 73% of trading volume moved offshore in FY25, while OECD CARF reporting from 2027 will increase oversight.
What happened
Indian cryptocurrency market · India’s crypto adoption remains strong despite absent formal regulation, high taxes and reporting burdens. Exchanges say 1% TDS
Key facts
- 70 million-90 million estimated crypto investors in India
- Rs 1,09,580 crore VDA transaction value from FY23 to FY25
- 131% cumulative growth in VDA transaction value from FY23 to FY25
- 1% TDS on VDA transfers
- 30% tax on VDA transfer income
- 73% of Indian crypto trading volume migrated offshore in FY25
- 18% GST on cryptocurrency exchange services
- CARF reporting framework applicable from 2027
- 82% of WazirX users are from non-metro cities
Why this matters
Payments, fintech and exchange acquirers should prioritize compliance-ready partners in India, where regulatory friction is consolidating value around reporting, KYC and cross-border transaction infrastructure.