India, home to 100+ million crypto users, is now rethinking how it regulates digital assets. The government is planning a full overhaul of its Virtual Digital Asset (VDA) rules, covering licensing, user protection, tax, and more.
This review is raising hopes among investors, exchanges, and builders who have been waiting for clarity.
Even with strict taxes and unclear regulations, India’s crypto trading volume has been phenomenal. From July 2024 to June 2025, India’s trading volume climbed again to $300 billion, proving that Indian users haven’t stepped away despite the Wazirx hack in July 2024 , which drained nearly $230 million from the exchange.
The recovery suggests that crypto in India is not fading. Instead, it is stabilising as more people learn, participate, and look for long-term opportunities.
Therefore now, the Indian government is now reviewing the entire framework.
The most important development now is the government’s decision to review and rebuild the entire VDA framework. This includes several major improvements that industry players have been requesting for years:
- Better protection for users and their assets
- Clear licensing rules for exchanges and custodians
- Full transparency about reserves, custody, and insolvency
- Oversight for stablecoins and tokenised real-world assets
- A re-evaluation of the strict 30% tax and 1% TDS
- Stronger reporting systems and better market monitoring.
As per officials, there’s no fixed timeline for a full regulatory framework. Indian authorities argue that any VDA rules must be coordinated internationally to avoid regulatory loopholes.
This review signals that India may finally be moving toward a stable and mature crypto environment.
For everyday investors, clearer rules can mean safer platforms, fewer risks, and a better crypto experience. And for companies, a structured rulebook could unlock innovation that has been held back by uncertainty.
Despite it, the Reserve Bank of India (RBI) continues to voice concerns. It warns that if crypto gains too much legitimacy through regulation, it could threaten financial stability.
