India has approximately 39 million cryptocurrency users holding assets worth $2.1 billion, while the central bank continues to urge banks to avoid exposure

India imposes a uniform 30% tax on the income from virtual digital assets and an additional 1% withholding tax on the transfer amount. Approximately 54 cryptocurrency service providers in the country have registered with the financial intelligence department, serving 39 million verified users, who collectively hold about $2.1 billion in assets.

The Reserve Bank of India (RBI) has repeatedly expressed to Parliament its preference for a prohibitive policy towards private cryptocurrencies and stablecoins, urging banks to avoid related exposures to protect financial stability. The long-promised cryptocurrency bill has yet to be completed.

Indian government agencies are also using permissioned blockchain in non-trading scenarios. AIIMS Delhi uses blockchain to manage teacher recruitment records, the Cotton Corporation of India tracks cotton bales through a blockchain identification system, and the aviation regulator DGCA is building a digital service platform associated with blockchain.