NRIs Face Complex Rules When Buying Crypto in India

Non-resident Indians (NRIs) face unique challenges when it comes to buying and selling cryptocurrency in India. Unlike resident Indians, NRIs must navigate additional Know Your Customer (KYC), banking, and foreign exchange requirements.

The main difference between Indian crypto traders and NRIs is not whether the latter can own digital assets, but rather how they can buy and sell these assets through Indian exchanges.

Indian crypto exchanges have specific rules for NRI customers, making their trading requirements more complex than those for resident customers. Banking can also be challenging for NRIs, as they cannot use Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts for crypto transactions.

Crypto payment and withdrawal options for NRIs depend on the exchange rules and foreign-exchange laws. Indian tax policies also apply to NRIs, with a 30% tax on crypto gains and 1% TDS on transfers.