India vs Vanuatu
Crypto regulation comparison
India
Vanuatu
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.
Vanuatu has become a popular jurisdiction for crypto businesses due to its tax-free environment. The VFSC has developed a regulatory framework for digital assets.
Tax Type
Capital gains
Tax Type
No tax
Tax Rate
30%
Tax Rate
0%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
CBDT, FIU-IND, SEBI, RBI
Regulator
Vanuatu Financial Services Commission (VFSC)
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
- VFSC regulates digital asset businesses
- No income, corporate, or capital gains tax
- Popular jurisdiction for crypto business registration
- Citizenship by investment program exists
- Developing digital asset regulatory framework
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)
