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India vs Palau

Crypto regulation comparison

India

India

Palau

Palau

Legal
Legal

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.

Palau has explored blockchain technology and launched a stablecoin program in partnership with Ripple. No income or capital gains tax.

Tax Type Capital gains
Tax Type No tax
Tax Rate 30%
Tax Rate 0%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator CBDT, FIU-IND, SEBI, RBI
Regulator Financial Institutions Commission
Stablecoin Rules No specific stablecoin regulation; RBI exploring digital rupee CBDC
Stablecoin Rules No specific stablecoin regulation
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
Key Points
  • Exploring national stablecoin in partnership with Ripple
  • No income or capital gains tax
  • Uses the US dollar as official currency
  • Small but forward-looking approach to digital assets
  • Limited domestic crypto infrastructure