Bhutan vs India
Crypto regulation comparison
Bhutan
India
Legal
Legal
Bhutan has quietly become a significant Bitcoin miner through its government investment arm, Druk Holding & Investments, leveraging hydroelectric power. No tax on crypto.
India legalized crypto taxation in the 2022 Union Budget, imposing a flat 30% tax on all crypto gains with no deductions for losses. A 1% TDS (Tax Deducted at Source) on crypto transactions above thresholds also applies. The Supreme Court struck down the RBI's 2018 banking ban in 2020, and India is now developing a broader regulatory framework.
Tax Type
No tax
Tax Type
Capital gains
Tax Rate
0%
Tax Rate
30%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
Royal Monetary Authority of Bhutan
Regulator
CBDT, FIU-IND, SEBI, RBI
Stablecoin Rules
No specific stablecoin regulation
Stablecoin Rules
No specific stablecoin regulation; RBI exploring digital rupee CBDC
Key Points
- Government entity Druk Holding & Investments mines Bitcoin
- Hydroelectric power used for mining operations
- No income or capital gains tax in Bhutan
- Royal Monetary Authority provides oversight
- One of the few countries with state-level crypto mining operations
Key Points
- Flat 30% tax on all crypto gains with no loss offset against other income (effective April 2022)
- 1% TDS on crypto transactions above ₹10,000 (₹50,000 for specified persons)
- Supreme Court struck down RBI's 2018 banking circular banning banks from serving crypto firms
- FIU-IND requires VASPs to register and comply with PMLA (Prevention of Money Laundering Act)
- India blocked non-compliant offshore exchanges (Binance, others) in 2024, later some re-registered
Sources
- Income Tax India - Section 115BBH
- FIU-IND - VASP Registration Circular
- Income Tax India - CBDT Circular 23/2022
- Income Tax India - TDS on VDA Section 194S
- Supreme Court - IAMAI v RBI Judgment (March 2020)
- PIB - FIU-IND Show Cause Notices to Offshore VDA SPs
- Gazette of India - PMLA VDA Notification (March 2023)