The cryptocurrency market is in a full-fledged bull run, with assets like Bitcoin, Solana, Dogecoin, and Pepe already delivering multi-fold returns since the start of the cycle.
While crypto is seeing rapidly growing adoption in the US, particularly following President Donald Trump’s pro-crypto stance, Indians continue to largely sit on the sidelines and miss out on attractive gains.
Crippling taxes, government hostility, and strict banking curbs continue to choke crypto participation in India. The recent WazirX hack didn’t help.
Due to limited access to early-stage tokens and cumbersome KYC requirements, even those investing in crypto are missing out on the most lucrative opportunities.
In this article, we explore how Indian crypto investors can tap into the global crypto movement and make the most of the ongoing bull run. We highlight the best crypto wallet and top crypto exchanges available in India, while also breaking down key aspects of the country’s crypto tax laws.
Finally, we explain how Indian investors can access promising new crypto assets early, without facing KYC hurdles.
Top Crypto Exchanges In India: FIU Compliant Crypto Exchange List
The Financial Intelligence Unit, an oversight arm of India’s Ministry of Finance, has been tightening its grip on digital asset platforms by enforcing stricter KYC and reporting norms.
Even major offshore exchanges like Binance, KuCoin and ByBit had to pay hefty fines to continue providing services in India.
The FIU requires exchanges to register with it, maintain the KYC records of all users, report suspicious transactions, track money laundering risks and build anti-money laundering infrastructure.
Currently, the top FIU-compliant crypto exchanges in India include Binance, Bybit, CoinDCX, Mudrex, CoinSwitch, and ZebPay.
FIU-compliant exchanges tend to offer comprehensive security, transparency and legal clarity. However, it is important to note that the recently hacked WazirX was also an FIU-compliant crypto exchange. Users should still take appropriate steps to safeguard their crypto assets.
Notably, the top Indian crypto exchanges are extremely selective with their asset listings. Take, for instance, CoinDCX, which is yet to list Hyperliquid (HYPE) on its futures market, despite it being one of the top-performing crypto assets in this bull cycle.
Users may, therefore, consider no-KYC platforms like Best Wallet, which offer access to a wide range of crypto assets along with early-stage investment opportunities.
However, it is imperative that investors maintain detailed records of their transactions and accurately report profits in their annual income filings to avoid enforcement action by the Income Tax Department.
Crypto Tax In India – Key Aspects To Keep In Mind
With tax season approaching, Indian crypto investors should keep the following key rules in mind:
- Flat 30% tax on all profits from selling, trading, or spending cryptocurrencies. This is applied under Section 115BBH, along with surcharge and cess.
- No loss set-off is allowed. Losses from one crypto cannot offset gains from another, nor can they be carried forward to future years.
- Only the acquisition cost is deductible. You can only subtract the original purchase price; other expenses like gas fees or trading fees are not allowed.
- 1% TDS applies to every trade. This tax is deducted at source on each transaction. Indian exchanges handle it automatically, but P2P or offshore trades may require self-deduction.
- Crypto must be reported under “Schedule VDA”. This section has been introduced specifically for crypto and digital assets in the income tax return form.
- Airdrops, mining, and staking are also taxable. These are taxed as regular income when received, and again at 30% when sold or converted.
- Penalties for non-compliance are severe. These range from 50% to 200% of the unpaid tax, with possible jail time of up to 7 years in extreme cases.
- Authorities are actively tracking activity. The Income Tax Department is using AI and blockchain tools to detect undeclared crypto income. Thousands of notices have already been issued.
How Can Indians Buy Crypto With No KYC
As previously mentioned, FIU-compliant exchanges typically offer a limited selection of crypto assets. This often means Indian investors miss out on high-upside opportunities, as new coins are only listed after they’ve already surged in price and reached market caps in the hundreds of millions.
However, Best Wallet, a new multi-chain, anonymous, and no-KYC crypto wallet, allows investors to securely access and buy trending tokens.
Its presale aggregator, labelled as “Upcoming Tokens” in the Best Wallet app, enables users to access all relevant information about new crypto assets and invest in them without leaving the app.
Additionally, Best Wallet is a multi-chain crypto wallet, which will soon offer support for over 60-plus chains.
It already supports Bitcoin, Ethereum, Polygon, Base and the BNB Smart Chain, which means users can buy, sell and swap tokens on these blockchains without creating new wallets.
Best Wallet stands out by offering advanced features, beyond traditional wallet capabilities, rarely seen in crypto wallets, including derivatives trading, a staking aggregator, cross-chain swaps, MEV protection, and gas token-free transactions.
By aiming to become a one-stop shop for everything crypto, the project opens up advanced features and early-stage investment opportunities that could benefit Indian users immensely.
It even has its own token, the Best Wallet Token (BEST), which has raised over $13.3 million in its presale, and is being viewed by many as the next 10x crypto.
Visit Best Wallet Website
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