Crypto Trading is Legal in India | Best Crypto to Invest

Is it Legal to Invest in Cryptocurrency in India?

Yes, crypto trading is legal in India but it has to comply with AML and tax regulations. However crypto is not a legal tender in India. One can trade and buy cryptocurrencies and crypto coins in India. Nowadays many investors are interested in investing in Crypto coins in India. So we will explore today the best crypto to invest in 2025. Keep reading.

Brief Timeline of VDA regulation in India

• RBI Ban in 2018

To protect the financial system from risks that could stem from cryptocurrencies, including fraudulent activities such as money laundering, in April 2018, the Reserve Bank of India took bold action by issuing a circular that banned all financial institutions, particularly banks, from aiding businesses that dealt with virtual currencies. 

This dramatically inhibited the cryptocurrency exchanges in India by disabling their access to vital bank services which not only avoided the direct abuse of the money systems but also made it impossible for the exchanges to trade the cryptocurrency into traditional currency. The ban was enforced by the RBI’s attempts to condone the risks that stemmed from the extensive use of cryptocurrencies. 

 

• Supreme Court’s Decision on Appeals and Reversal of the Controversial RBI Circular of 2018.

In IMAI vs. RBI, the Supreme Court of India ruled in IMAI's favor and argued that RBI's 2018 circular imposed restrictions that captured the fundamental right to trade and conduct business outlined in Article 19(1)(g) of the Constitution. The Court recognized the RBI’s concern regarding the protection of financial institutions, but upon imposing such a ban the RBI failed to justify what is described as the ‘test of proportionality.’ 

The Judges observed that any limitation accompanying a fundamental right must be the ‘least intrusive measure’ to actualize the intended purpose. Not only did the judgment restore banking services for crypto businesses, but it also marked a shift in India's stance towards the regulatory framework for VDAs (Virtual Digital Assets).

(Source: globallegalinsights.com)

How to Invest in Crypto?

Many people are searching for how to invest in crypto. So this section will tell you a simple way to buy crypto. Investing in cryptocurrency in India is quite simple. You just need to complete KYC verification and make sure the trading platform is registered with FIU and 100% compliant with Indian regulations. 

To open an account in Delta Exchange and invest in crypto, simply click on Delta Exchange India.

Cryptocurrency Tax Regulations (Crypto Tax)

There is no specific information regarding crypto taxes for investors in India from the Income Tax Department (ITD). But as per the Income Tax Act, there are salient details in Section 115BBH and Section 194S related to the taxation of Virtual Digital Assets (VDAs) like cryptocurrencies, NFTs, tokens, and so forth. Profits obtained from VDAs may attract a tax of 30% of the profit made, with a TDS of 1% on trading profits, and possibly income tax on other non-trade income profits at the applicable slab rate. 

Best Crypto to Invest

If you are looking for the best crypto to invest and want to 100x your worth then below are the top 10 crypto coins in 2025 that can fulfill your purpose. (No buy or sell or trading or investment advice it is).

Indian Crypto Coins List

1. Bitcoin (BTC)

2. Dogecoin (DOGE)

3. Binance Coin (BNB)

4. SHIBA INU (SHIB)

5. Ripple (XRP)

6. Polkadot (DOT)

7. Ethereum (ETH)

8. Solana (SOL)

9. Cardano (ADA)

10. Avalanche (AVAX)

 

Looking for the best meme coin to invest for future? Read our blog in which we have covered the top 10 Meme Coins in 2025.

 

Government Approved Cryptocurrency in India

Since cryptocurrency is not banned in India hence buying, or selling any cryptocurrency is legal. There is as such no government-approved or disapproved cryptocurrency in India but the trading platform or the Virtual Digital Assets Service Providers should be registered with the Financial Intelligence Unit. If the trading platform or VDA service provider is FIU registered then one can trade or invest in that cryptocurrency after completing necessary formalities and KYC verification.

Conclusion

In India, trading cryptocurrency is legal. However, compliance with taxation and AML protocols is a necessity. Regardless of cryptocurrencies’ uncertain future, many investors believe certain crypto currencies may boom significantly in 2025. Among the top choices are coins such as Bitcoin, Ethereum, and Solana, etc. 

Disclaimer: No buy or sell recommendation is given. No investment or trading advice it is. This blog is only for information purposes and should not be considered investment advice. Always discuss with an eligible financial advisor before investing or trading. The Author or the company (Finowings) shall not be responsible for any loss.