India’s Crypto Rules to Change in June: Is Legal Clarity Finally Here?

India’s crypto scene could be weeks away from its biggest breakthrough. After years of regulatory limbo, the Indian government is now preparing to release a much-anticipated crypto discussion paper in June 2025. The move signals a potential shift in how crypto are treated legally in India, addressing questions like: Is crypto legal in India? Will India lower crypto tax? Does crypto have a future in India?

This major policy shift, after years of uncertainty, is seen by many as a thoughtful step toward regulation. Crypto proponents, however, are hopeful for tax relief and broader adoption as key outcomes. Several industry leaders have welcomed the development but warn that the release of a discussion paper offers no guarantee of actual regulatory change.

India’s Crypto Industry Reacts: Hopeful, But Cautious

Sumit Gupta, CEO of CoinDCX, expressed optimism: “India is finally set to release the most-awaited discussion paper on crypto in June 2025! My sense is that it will cover the key risks associated with the sector and seek public comments to build further thoughts around crypto policy but no commitment on regulation yet.

Source: X

According to him, the release of this discussion paper will ‘finally’ provide opportunities to Indian crypto investors, industry players, media to provide comments, feedback on the sector. Sumit also noted that, on 21 February this year, the Financial Stability Board (FSB) launched a thematic peer review to assess how its members and select non-members are implementing the FSB Crypto Framework and that the global progress report is due in October 2025.

“This decade belongs to Indian builders. Let’s make India the Web3 capital of the world,” he stated in his post. Taken together, these developments suggest that India is aligning itself more closely with global crypto policy trends  albeit cautiously.

However, not everyone is convinced. A few observers are questioning the timing behind the move, especially after neighbouring countries like Pakistan made a surprise announcement by unveiling its first government-led Bitcoin reserve plan. Bilal Bin Saqib, newly appointed crypto and blockchain consultant, who made the revelation, directly tied Pakistan’s crypto strategy to  US President Donald Trump’s pro-crypto stance.

India Crypto Developments (2013-2025)

2013: RBI issues an advisory against cryptocurrency

2017: The finance ministry said that #crypto is a Ponzi.

2018: RBI issues a circular banning crypto

2020: The Supreme Court overturns the RBI’s crypto ban.

2021: The government reiterated its plan for banning and prohibiting cryptocurrencies.

2022: The Finance Minister announced a 30% tax and 1% TDS on crypto assets.

2023: The Finance Minister calls for global crypto regulation.

2024: The Indian government banned foreign exchange URLs and removed them from the App Store.

2025:

• Supreme Court terms current crypto laws “obsolete”.
• Crypto exchanges and stakeholders ramp up lobbying for tax reform and formal guidelines

Conclusion

Is this just another policy paper in a long line of vague promises, or is India finally getting serious about digital assets? For an industry often caught in tax limbo and legal grey zones, hope hinges on whether the government will follow through with clear, actionable guidelines. As global powers move rapidly toward regulatory frameworks and countries like Pakistan take bold steps, India risks falling behind if it continues to hesitate. The winds are shifting. Now it’s up to India to decide whether to lead Web3 innovation or be left catching up.

FAQs

1. Is it legal to buy crypto in India?
Not yet fully regulated, but the upcoming discussion paper in June 2025 may lay the groundwork for future legalization.

2. Is crypto taxed in India?
Yes. Crypto gains are taxed at 30%, with 1% TDS applicable on transactions, as per the 2022 Union Budget.

3. Does crypto have a future in India?
The industry hopes so — with stakeholder consultations and global frameworks being considered, India may soon have a clear crypto policy.

4. Is crypto trading available in India?
Yes, trading is permitted, but currently lacks comprehensive legal backing. Regulatory clarity is awaited.