Currently, cryptocurrencies are not regulated in India.
The 2018 central bank’s decision forced crypto exchanges to close, relocate or shift to crypto-to-crypto and over-the-counter trading. After the overturn on Mar. 2020 the overall trading volumes on Indian cryptocurrency exchanges have slightly increased.
The missing regulatory framework makes tax reporting difficult for legitimate crypto earnings. The chairman of the Central Board of Direct Taxation has announced that taxes must be paid for Bitcoin profits.
The leading national exchanges are WazirX (Binance subsidiary), CoinDcx, BuyUCoin and Zebpay. The reported volume hasn’t increased considerably in the recent past.
Timeline of related events
Sept. 2020: Major crypto exchange BuyUCoin prepared and proposed a regulatory sandbox/framework Cointelegraph
Sep. 2020: Rumors about banning of crypto trading have emerged Coindesk
Mar. 2020: India’s Supreme Court Lifts Banking Ban Coindesk
Jul. 2019: Indian Government Draft Crypto Bill, recommending complete crypto ban Bitcoin.com
Apr. 2018: the central bank, Reserve Bank of India, banned banks and financial institutions from doing crypto businesses Rbi.org.in
Feb. 2018: CBDT chairman announces taxation that crypto earnings are taxable IndiaTimes.com
Dec. 2017: Ministry of finance issues warning for investors Cointelegraph