Cryptocurrency Regulation in India: Timeline (2013-2025)

Digital assets, cryptocurrencies, or virtual currencies (‘cryptocurrencies’, ‘crypto') are not recognized as legal tender in India. The legal status of cryptocurrencies remains ambiguous, meaning they cannot be used for everyday transactions like conventional money. 

Over the past decade, Indian regulators have issued warnings, enforced de facto banking restrictions, and imposed taxes on crypto gains, but at the same time, shown some progress by piloting a central bank digital rupee. This timeline traces every event in this evolving stance, from the RBI’s first caution in 2013 to the retail CBDC pilot and the newest reporting mandates in 2025, highlighting how policy, taxation and judicial decisions have shaped (and restricted) India’s crypto landscape.

DATE	PARTICULARS
December 24, 2013	The Reserve Bank of India (‘RBI’) issued its first advisory as a caution to the public about risks of dealing in Virtual Currencies (‘VC’), warning about financial instability, money laundering, and lack of regulatory oversight.  It was stated that the creation, trading or usage of VCs including Bitcoins, as a medium for payment was not authorised by any central bank or monetary authority and that no regulatory approvals, registrations or authorisations have been obtained by the entities concerned for carrying on such activities.
December 9, 2016	The Committee on Digital Payments, formed by the Ministry of Finance in August, 2016 to review the framework related to Digital Payments in India, released its report titled “Medium Term Recommendations to Strengthen Digital Payment Ecosystem.”  While the Committee did not specifically deal with Virtual Currencies, it mentioned digital currencies, which could include crypto-currencies, and highlighted the benefits of digital currencies for the payments ecosystem. The Committee recommended that the possibility of a RBI backed digital currency be evaluated.
February 1, 2017	The RBI issued its second advisory as a caution to the users, holders, and traders of VCs about potential financial, operational, legal, customer protection, and security risks. It was re-iterated that the RBI has not permitted any entity a license or authorization to operate VC related businesses.
April 12, 2017	The Ministry of Finance constituted an Inter-Disciplinary Committee chaired by the Special Secretary (Economic Affairs) to examine the existing framework with regard to Virtual Currencies. The Committee was tasked to submit its reports in three months.
August 3, 2017	Security and Exchange Board of India (‘SEBI’) constituted the Committee on Financial and Regulatory Technologies (‘CFRT’) to assess emerging FinTech trends, explore their impact on the Indian securities market, and recommend regulatory sandboxes in order to ensure a balanced market, investor protection, and effective supervision. Among other things, this SEBI panel was to explore technological solutions including Distributed Ledger Technology (‘DLT’). While not focused on VCs, it indicated regulators’ growing interest in the implications of blockchain based technologies for financial markets.
December 5, 2017	The RBI issued its third advisory as a caution to the public regarding virtual currencies and re-iterated that no license/authorization had been issued by the RBI to any entity/company to operate schemes or deal with Bitcoin or any VC.
February 1, 2018	In the Union Budget speech presented by the then Finance Minister Mr. Arun Jaitley, it was clarified that cryptocurrencies are not recognized as legal tender in India, and all necessary measures shall be taken to eliminate the use of cryptocurrencies used for  funding illegitimate activities or for use as part of the country’s payment systems. It was also stated that “the Government will explore use of block chain technology proactively for ushering in digital economy.”
April 5, 2018	In the Statement on Developmental and Regulatory Policies released by the RBI,  the dangers related to dealing with VCs were restated and it was decided that entities regulated by the RBI shall not be permitted to provide services to any individual or business entities dealing with or settling VCs. Regulated entities already providing such services were asked to exit such dealings within a specified time. A circular in this regard was to be issued separately.
April 6, 2018	The RBI issued a notification prohibiting the entities regulated by the RBI from dealing in VCs or providing services to facilitate any person or entity in dealing with or settling transactions involving VCs. Regulated entities that were already providing such services were directed to exit those relationships within three months from the date of this notification. This essentially acted as a shadow-ban on cryptocurrencies and set up the stage for the writ petition by the Internet and Mobile Association of India before the Supreme Court.
February 28, 2019	An Inter-Ministerial Committee (‘IMC’), which was formed in November, 2017 to study the issues related to virtual currencies and propose specific actions to be taken in this matter submitted its report on VCs, recommending that given the risks associated with them, all private VCs, except any VC that may be issued by the government, be banned in India.  The committee also proposed a ‘Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019’. Notably, this bill was never introduced in Parliament.
March 4, 2020	The Hon’ble Supreme Court of India, in Internet and Mobile Association of India v. Reserve Bank of India, set aside the 2018 RBI circular prohibiting banks from dealing in VCs or providing services for facilitating any person or entity in dealing with or settling VCs. The court held that the circular violated Article 19(1)(g) of the Constitution of India, which guarantees the right to practice any profession or to carry on any trade, occupation, or business. As a result, the use and trading of cryptocurrency was no longer prohibited in India, although it remains unregulated.
March 24, 2021	The Ministry of Corporate Affairs, through a notification, amended Schedule III to the Companies Act, 2013 to introduce reporting requirements for companies holding VCs, effective 1 April, 2021. Pursuant to this amendment, companies with exposure to cryptocurrencies or VCs are required to disclose any profit and loss on transactions involving VCs, holdings as on the reporting date, and deposits or advances received from any person for the purpose of trading or investing in VCs in their financial statements.
May 31, 2021	The RBI issued a clarification to banks and other regulated entities via a circular titled “Customer Due Diligence for Transactions in Virtual Currencies (VC)” advising them to continue conducting customer due diligence processes in accordance with applicable regulations for Know Your Customer (‘KYC’), AML, Combating of Financing of Terrorism (‘CFT’), along with the obligations under the Prevention of Money Laundering Act, 2002 (‘PMLA’). In addition, regulated entities must ensure compliance with relevant provisions under Foreign Exchange Management Act, 1999 (‘FEMA’) for overseas remittances.  It was clarified by the RBI that citing the April 6, 2018, circular (prohibiting dealing or providing services to cryptocurrency-related entities) was no longer in order as the circular had been set aside by the Supreme Court of India.
November 23, 2021	A Lok Sabha bulletin listed the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ for introduction in Parliament’s Seventh Session of the 17th Lok Sabha.
February 1, 2022	While presenting the Union Budget of 2022, the Finance minister, Ms. Nirmala Sitharaman, announced that income arising from the transfer of any Virtual Digital Asset (‘VDA’) would be taxed at the rate of 30%. In addition, a 1% Tax Deducted at Source (‘TDS’) would apply to payments made for such transfers exceeding a specified threshold w.e.f. 01 July, 2022.
February 7, 2022	The Minister of State, Ministry of Finance in response to a Lok Sabha Unstarred Question  stated that an IMC was constituted on November 2, 2017 to examine issues related to VCs and recommend appropriate policy measures. It was also restated that the IMC recommended a complete ban on all private cryptocurrencies in India, except those issued by the State.
March 25, 2022	The Income Tax Act, 1961, was amended by Finance Bill, 2022, to insert Section 115BBH, which codified the 30% tax on income from the transfer of VDA. Further, a new clause (47A) was inserted in Section 2 of the Act to define VDAs.
October 07, 2022	The RBI released its Concept Note on Central Bank Digital Currency (‘CBDC’) for India, which explained the objectives, choices, benefits, and risks of issuing a CBDC in India as well as the approach of the RBI while dealing with CBDCs.
October 31, 2022	RBI launched a pilot for the Digital Rupee (e₹). The first phase was the Wholesale CBDC Pilot (e₹-W), aimed at the interbank market where 9 banks participated.
December 12, 2022	As per a press release, the pilot for the (e₹-R), the retail CBDC launched on 01 December, 2022.
March 7, 2023	The Ministry of Finance brought the exchange, transfer, and safekeeping of VDA under the purview of the PMLA, thereby bringing transactions involving VDAs within the ambit of the Act’s compliance and reporting framework.
March 10, 2023	Following the PMLA inclusion, the Financial Intelligence Unit (‘FIU-IND’) issued detailed “AML/CFT Compliance Guidelines for Reporting Entities Providing Services Related to Virtual Digital Assets”. These guidelines mandated that all crypto exchanges and providers in India register with FIU-IND and implement full KYC and anti-money-laundering programs.
April 3, 2023	While responding to a Lok Sabha Unstarred Question, the Minister of States in the Ministry of Finance clarified that crypto assets are currently unregulated in India. The Ministry further noted that, by their very nature, crypto-assets are borderless and require international collaboration to prevent regulatory arbitrage. It emphasized that any legislation to regulate or ban crypto assets would be effective only through substantial international collaboration on risk and benefit assessment and the development of common taxonomy and standards.
October 13, 2023	Finance Ministers and Central Bank Governors of G20 nations adopted a roadmap for regulating crypto assets proposed by the Financial Stability Board (‘FSB’) and the International Monetary Fund (‘IMF’) at their meeting in Marrakesh, Morocco. The ministers and governors endorsed the roadmap put forward in the IMF-FSB synthesis paper on Crypto assets to pursue shared objectives of macroeconomic and financial stability and ensure efficient, adaptable, and well-coordinated execution of the holistic policy framework for crypto assets.
December 28, 2023	As part of compliance action the FIU-IND issued compliance Show Cause Notices to nine offshore Virtual Digital Assets Service Providers (‘VDA SPs’) under Section 13 of the PMLA. The Director, FIU-IND also wrote to the Secretary, Ministry of Electronics and Information Technology to block the URLs of said entities.
February 1, 2025	The Income Tax Act, 1961, was amended by Finance Bill, 2025, to insert Section 285BAA, which mandates reporting of crypto transactions by a reporting entity, as prescribed.
April 16, 2025	In Hajarimal Bathra v. Union of India, the Supreme Court of India dismissed a petition seeking guidelines from the court in exercise of its jurisdiction under Article 142 of the Constitution of India to prevent and penalize fraudulent transactions involving cryptocurrencies. The court took the view that the prayers made were within the domain of the legislature and the executive but left it open for the petitioners to make a representation before the appropriate authority.
May 30, 2025	In Shailesh Babulal Bhat v. the State of Gujarat, while hearing a bail plea orally questioned why no regulation is being considered to govern cryptocurrency. The Supreme Court observed that India’s current laws are completely obsolete when it comes to dealing with cryptocurrencies, like Bitcoin. It was noted that there is a grey area in how these digital assets are regulated and the court asked the government to take steps to address the issue, as per news reports.
July, 2025	It was reported in May, 2025 that India would likely float a discussion paper outlining policy framework options for crypto assets in the next month. While no Discussion Paper has been released yet, there is again talk that this might come out in July, with a focus on Stablecoins. There is no official source confirming this yet.

Additional Notes:

1. In December 2017, it was reported that the Income Tax Department had asked bitcoin holders to disclose details of bitcoins or other cryptocurrency transactions. The income tax notices were issued to 4-5 lakh high net worth individuals under the annexure to summons under Section 131 of the Income Tax Act. This was supposed to be a fact-finding exercise to understand sources of income and whether there is any unreported income arising out of bitcoins. No official confirmation was issued by the Income Tax Department on this subject. 

   
   

2. In January, 2018 it was reported that the Registrar of Companies (RoC) had stopped registering cryptocurrency exchanges under the Companies Act, 2013. It was suggested that the RoC, which works under the MCA, had in some instances asked for an undertaking from software development or information technology companies that they shall not deal with cryptocurrencies. No official confirmation was issued by the RoC or the MCA on this subject. 

   
   

3. In February, 2018 the then Chairman of the CBDT announced that the Income Tax Department had issued about 100,000 notices to people who have invested in cryptocurrencies like Bitcoin and had not declared it in their income tax return. In June 2025, it was reported that the CBDT had launched a probe into possible tax evasion and laundering unaccounted income through investments in VDAs. There is no official source of confirmation on this yet. 

   
   

4. In June 2024, it was reported that the FIU imposed a fine of 188.2 million rupees ($2.25 million) on Binance. Prior to this, in May 2024, it was reported that Binance had registered with the FIU. 

Authors: Abhinav Goyal and Nishika Godha