Can Businesses in India Accept Crypto Legally in 2025?
Nov, 14 2025
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Can a business in India legally accept Bitcoin, Ethereum, or any other cryptocurrency as payment? The short answer: no - not as a payment method for goods or services. But here’s the twist: you can legally trade, hold, and offer crypto-related services - if you jump through a very specific set of regulatory hoops.
What’s Actually Allowed?
Cryptocurrency isn’t banned in India. You can buy it. You can sell it. You can hold it. But using it to pay for your coffee, your website design, or your monthly rent? That’s a no-go. The government hasn’t made crypto illegal, but it also hasn’t given it the status of legal tender. That means no business can legally treat Bitcoin like rupees - even if the customer insists. The Reserve Bank of India (RBI) has never approved crypto as a payment system. In fact, they’ve repeatedly warned that digital assets pose risks to financial stability. Instead, the government is pushing its own digital currency, the e-Rupee, as the official digital alternative to cash. So what can businesses actually do with crypto? You can run a crypto exchange. Offer investment advice. Build blockchain tools. Sell NFTs. Provide education on crypto trading. But you can’t open a store and say, "We accept Dogecoin."Why the Strict Rules?
India’s approach isn’t about stopping crypto - it’s about controlling it. The government wants to make sure it gets its cut. That’s why the tax rules are some of the strictest in the world. Since 2022, all income from crypto trades - whether you made a profit or not - is taxed at a flat 30%. No deductions. No offsetting losses. Even if you bought Bitcoin for ₹1 lakh and sold it for ₹1.1 lakh, you owe ₹33,000 in taxes on that ₹10,000 gain. Add a 4% cess, and you’re paying ₹34,320. Then there’s the 1% Tax Deducted at Source (TDS). Every time you send crypto - even if you’re just moving it between wallets - 1% gets withheld and sent to the government. If you’re a business accepting crypto from a customer, you’re legally required to deduct that 1% before transferring the funds. That means your cash flow gets squeezed immediately. No exceptions. Not even for small transactions.Compliance Isn’t Optional - It’s Mandatory
If you’re running any kind of crypto business - even just a small trading platform - you must register with the Financial Intelligence Unit of India (FIU-IND). This isn’t a suggestion. It’s law. Since March 2023, all Virtual Digital Asset (VDA) service providers fall under the Prevention of Money Laundering Act (PMLA). That means you need full Know Your Customer (KYC) checks on every user. You need to monitor every transaction for suspicious activity. You need to keep records for at least five years. And you need to report anything unusual to FIU-IND. The penalties for skipping this? Heavy. Binance was fined over ₹18 crore in 2024 for not registering. Bybit paid nearly ₹9.3 crore. Both had to shut down operations in India until they got compliant. Now they’re back - but only because they followed the rules. Even international platforms serving Indian users must comply. If you’re a foreign crypto exchange and an Indian customer trades with you, you’re still bound by Indian law. No loopholes.
The Travel Rule: India’s Hardest Crypto Regulation
India is one of the only countries in the world that enforces the Financial Action Task Force (FATF) Travel Rule with no minimum threshold. That means every single crypto transfer - whether it’s ₹500 or ₹5 crore - must include full sender and receiver details: name, address, ID number, wallet address. Most countries only require this for transactions over ₹1 lakh or $1,000. India doesn’t care about the amount. If it’s crypto, it’s tracked. For businesses, this means you need systems that can capture, store, and report this data automatically. Manual spreadsheets won’t cut it. You need software that integrates with wallet providers and exchanges. This isn’t just a tech upgrade - it’s a legal requirement.What About the COINS Act 2025?
There’s hope on the horizon. The proposed Comprehensive Regulation of Cryptographic Assets (COINS) Act 2025 could change everything. Right now, it’s still under review, but if passed, it would be the first real legal framework for crypto in India. The COINS Act could:- Give crypto a clear legal definition
- Require all exchanges to get licensed by the RBI
- Allow clearer tax deductions (like trading fees)
- Introduce consumer protections against scams
- Possibly open the door to crypto as a payment method - but only under strict controls
What Can You Do Right Now?
If you’re a business owner thinking about crypto, here’s what actually works:- Run a crypto exchange - Register with FIU-IND, implement KYC, and start trading.
- Offer crypto investment advice - Charge fees for portfolio management or educational courses.
- Build blockchain tools - Create smart contracts, dApps, or audit systems for other crypto firms.
- Accept crypto for services tied to crypto - For example, a developer can accept ETH for building a wallet interface - as long as it’s clearly a service fee, not a payment for goods.
The Banking Problem
Even if you’re fully compliant, getting a bank account is hard. Most traditional banks in India still treat crypto businesses as high-risk. Many refuse to open accounts. Others shut them down without warning. You might need to work with fintech banks or specialized crypto-friendly financial partners. But even those are cautious. You’ll need to show clean records, full FIU-IND registration, and solid tax compliance before they’ll even consider you.The Bottom Line
India isn’t shutting down crypto. It’s regulating it into submission. The government wants to tax it, track it, and control it - not ban it. For businesses, the path is narrow but open. You can operate legally - but only if you treat crypto like a regulated asset, not a currency. That means:- Never accept crypto as payment for goods or services
- Register with FIU-IND if you’re handling crypto transactions
- Collect and remit 1% TDS on every crypto transfer
- Pay 30% tax on all crypto gains, no deductions
- Keep detailed records of every transaction
- Stay ready for the COINS Act - it could change everything
Can I accept Bitcoin as payment in my shop in India?
No. Businesses in India cannot legally accept cryptocurrency as payment for goods or services. While buying, selling, and holding crypto is allowed, the government does not recognize it as legal tender. Accepting crypto as payment puts you at risk of tax penalties, compliance violations, and potential legal action under the Income Tax Act and PMLA.
What happens if I accept crypto without registering with FIU-IND?
You could face heavy fines, account freezes, or even criminal charges. Binance and Bybit were each fined over ₹9 crore in 2024 for not registering. FIU-IND actively monitors crypto transactions, and unregistered platforms are targeted for enforcement. Registration is mandatory for any business handling crypto transfers, regardless of size.
Do I have to pay tax even if I didn’t make a profit?
Yes. India taxes all crypto transactions at a flat 30%, regardless of profit or loss. Even if you trade crypto and end up with less than you started, you still owe 30% tax on the total value of the transaction. Only the original cost of acquisition can be deducted - no other expenses are allowed.
Is the 1% TDS on crypto transfers really applied to every transaction?
Yes. The 1% Tax Deducted at Source (TDS) applies to every crypto transfer, no matter how small. Whether you’re sending ₹500 or ₹5 lakh, the recipient must deduct and deposit 1% to the government. This includes peer-to-peer transfers and business payments. Failing to withhold TDS makes you liable for the unpaid amount plus penalties.
Can I use crypto to pay my employees in India?
No. Salaries must be paid in Indian rupees under the Payment of Wages Act. Paying employees in cryptocurrency violates labor laws and could lead to legal action from labor authorities. Even if employees agree, the payment is not legally recognized as salary, and you remain liable for statutory benefits like PF, ESI, and gratuity in rupees.
Will the COINS Act 2025 let me accept crypto as payment?
Possibly - but not yet. The COINS Act 2025 is still under review. If passed, it may create a licensing system for crypto payments under RBI oversight, similar to how UPI works. But until it becomes law, accepting crypto as payment remains illegal. Don’t assume the law will change - plan for compliance under current rules.
What’s the difference between crypto trading and accepting crypto as payment?
Trading crypto means buying or selling it as an asset - that’s legal. Accepting crypto as payment means using it to settle a debt for goods or services - that’s not. The tax and compliance rules are different. Trading is treated as capital gains; accepting it as payment is treated as income, triggering both 30% tax and 1% TDS. Only trading is permitted under current rules.
Can foreign businesses accept crypto from Indian customers?
Yes - but only if they comply with Indian law. If your business serves Indian customers and processes crypto transactions, you’re required to register with FIU-IND, apply 1% TDS, and follow KYC rules. Many international exchanges have shut down operations in India because they refused to comply. Compliance is mandatory, regardless of where your company is based.
Peter Rossiter
November 15, 2025 AT 01:0830% tax on every trade no deductions 1% TDS on every transfer even 500 rupees this is crypto prohibition with extra steps
jesani amit
November 16, 2025 AT 07:27Man I know this is strict but honestly if you’re running a real business in India you gotta play the game. I run a small blockchain dev shop and we take crypto for services but we treat it like a consulting fee not a payment. We document everything, pay the 30% tax, deduct the 1% TDS, and file with FIU-IND. It’s a pain but it works. I’ve seen too many guys try to cut corners and get hit with fines that wipe out their whole year. Don’t be that guy. Stay compliant. The COINS Act might change things but until then? Play it safe. You’ll thank yourself later.
Ella Davies
November 16, 2025 AT 20:25Interesting how the RBI is pushing e-Rupee while cracking down on crypto. Feels like they want control, not innovation. The Travel Rule without a threshold is wild. No other country does that. Makes me wonder if this is really about financial stability or just revenue extraction.
Henry Lu
November 17, 2025 AT 08:37lol so you want to accept dogecoin for your chai? bro you think you’re crypto degenerate but you’re just a tax evader waiting to get audited. 30% tax on every trade even if you lose money? that’s not regulation thats extortion. and you think the govt cares about your ‘business’? they just want your money and your data. get real
nikhil .m445
November 18, 2025 AT 01:19How can anyone be confused about this? Crypto is not money. Money is rupee. End of story. Anyone accepting crypto as payment is breaking law. Simple. No excuses. FIU-IND will find you. You will pay. You will regret. I have seen it happen. Many times.
Rick Mendoza
November 19, 2025 AT 12:091% TDS on every transfer even micro transactions this is insane nobody can operate like this. The system is designed to kill innovation not regulate it
Lori Holton
November 21, 2025 AT 02:37Let me guess the e-Rupee is just a backdoor for the government to track every rupee you spend. And crypto is the ‘enemy’ because it can’t be monitored. This isn’t about financial stability it’s about total control. Welcome to digital authoritarianism with a tax receipt.
Shanell Nelly
November 21, 2025 AT 03:20India’s approach is harsh but not unique. Look at how many countries are tightening crypto rules. The key is to adapt. If you’re a dev or a service provider you can still thrive. Just treat crypto like a service fee not a currency. Use compliant wallets. Document everything. Build systems that auto-deduct TDS. It’s not fun but it’s possible. And honestly? The COINS Act might be the push we need to make this sustainable. Stay sharp.
Aayansh Singh
November 21, 2025 AT 18:4630% tax on losses? That’s not tax that’s theft. Only in India you pay tax for losing money. And TDS on wallet transfers? Who designed this? A bureaucrat with a grudge? This isn’t regulation it’s punishment.
Rebecca Amy
November 22, 2025 AT 23:23eh idk just don’t do it bro. too much paperwork. just take rupees.
Kathleen Bauer
November 23, 2025 AT 07:06Been running a crypto education platform for two years. Took me 6 months to get FIU-IND registered. Had to hire a compliance officer. Now I pay 1% TDS on every student payment. It’s a headache but I sleep at night. The real win? My students are learning. The system’s broken but you can still make it work if you’re smart.
Laura Lauwereins
November 24, 2025 AT 04:04So let me get this straight… you can own crypto but can’t use it to buy coffee? You can trade it but can’t pay your rent? You can get taxed on losses but not deduct your gas fees? This isn’t regulation. This is a bureaucratic joke with a tax code.
Gaurang Kulkarni
November 25, 2025 AT 01:28People keep asking if they can accept crypto as payment. Answer is no. No exceptions. No loopholes. No ‘but my customer wants it’. The law is clear. Violation means fines jail or both. Binance paid 18 crore. You think you’re smarter? You’re not. Stop dreaming. Follow the rules or get crushed.
Nidhi Gaur
November 26, 2025 AT 02:17My cousin tried to take BTC for his photography services. Got a notice from income tax. Had to pay 30% tax plus penalty. Now he only takes UPI. I told him this would happen. But he thought crypto was magic money. It’s not. It’s just another asset. Treat it like one.
Usnish Guha
November 26, 2025 AT 06:54If you’re accepting crypto you’re not a business owner you’re a tax evader. The government is not your friend. They’re watching. Every wallet. Every transfer. Every rupee you think you hid. They know. And they will come for you. Don’t be foolish. Stick to rupees. Stay legal. Stay safe.
satish gedam
November 27, 2025 AT 12:03Hey if you’re thinking of dipping into crypto in India don’t panic. It’s tough but doable. I help small businesses set up compliant crypto workflows. We use regulated wallets. We auto-calculate TDS. We file everything on time. You don’t need to be a tech genius. Just be organized. And yes the taxes are brutal but at least you’re not in jail. Keep your head down. Do the paperwork. You’ll be fine. And hey if COINS Act passes? We’ll all breathe easier.
rahul saha
November 28, 2025 AT 09:50Crypto is the new gold but india treats it like contraband. We live in a paradox. You can own it but not spend it. You can trade it but not earn from it. You can hold it but not use it. The government fears freedom. And so we are forced to dance in chains. But still… I hold. Because one day the chains will break.
Jerrad Kyle
November 29, 2025 AT 06:31Let’s be real. India’s crypto rules are the most brutal in the world. 30% tax on every trade? 1% TDS on every transfer? Even for 500 rupees? That’s not regulation that’s a death sentence for innovation. And yet… people are still building. Startups are still launching. Developers are still coding. Why? Because the future’s too damn valuable to ignore. This isn’t the end. It’s just the ugly middle. Hang in there. The COINS Act might be the light at the end of the tunnel.
Usama Ahmad
November 29, 2025 AT 11:44Yeah I get it the rules are crazy. But I’ve been using crypto for freelance gigs since 2022. I just treat it like a service payment. I don’t call it ‘payment for goods’. I call it ‘consulting fee’. I deduct TDS. I pay tax. I file. It works. Not perfect but it works. Don’t overcomplicate it. Just follow the steps.
Nathan Ross
November 30, 2025 AT 16:59The Travel Rule without threshold is unprecedented. It’s not just about money laundering. It’s about data collection. Every transfer tracked. Every wallet linked. Every ID verified. This isn’t a financial policy. It’s a surveillance infrastructure disguised as regulation. The e-Rupee isn’t the future. It’s the endpoint.