Want to move your crypto from India to another country? It’s not as simple as clicking "send" on your wallet. By 2025, India has built one of the strictest frameworks in the world for sending cryptocurrency overseas. The rules aren’t just about taxes-they’re about paperwork, reporting, penalties, and even bank freezes. If you’re thinking of moving Bitcoin, Ethereum, or any other digital asset out of India, you need to know what’s really happening on the ground.
It’s Legal to Own Crypto in India-But Not to Move It Freely
Yes, you can buy and hold crypto in India. The Supreme Court lifted the RBI’s banking ban back in 2020, and since then, over 107 million Indians own digital assets. But ownership doesn’t mean freedom to move. The government treats crypto as a Virtual Digital Asset (VDA), not money. That distinction changes everything. When you send crypto abroad, you’re not just transferring a file-you’re moving an asset that triggers tax, foreign exchange, and anti-money laundering rules all at once.There’s no outright ban on sending crypto overseas. But the government has layered on so many compliance hurdles that most people can’t navigate them without professional help. The moment you initiate a cross-border transfer, multiple agencies-RBI, SEBI, Income Tax Department, FIU-IND-start watching your transaction. And they’re not just watching. They’re actively freezing accounts.
Three Big Rules That Control Every Crypto Transfer
Three laws control every cross-border crypto move from India. Break any one, and you risk fines, audits, or worse.
- FEMA Regulations: Under the Foreign Exchange Management Act, crypto is classified as "intangible movable property." That means if you send more than $250,000 worth of crypto abroad in a year, you need prior approval from an authorized dealer bank (like SBI or HDFC). No approval? Your transfer gets blocked. And yes, they track it-even if you use a non-Indian exchange.
- Income Tax Rules: Every time you send crypto abroad, you must report it as a capital gain. The tax rate? A flat 30%. No deductions. No loss offsets. Plus, a 1% Tax Deducted at Source (TDS) kicks in on any transaction over ₹50,000. And if you don’t declare foreign holdings in your ITR (Schedule VDA), you could face a 60% penalty on the undisclosed amount.
- FATF Travel Rule: Unlike most countries that only apply this rule to transfers over $1,000, India applies it to every single transaction. That means your exchange must collect and send your full name, address, Aadhaar number, and wallet address to the receiving platform. If your wallet doesn’t have that data, the transfer fails.
Taxes Are the Biggest Trap
People think crypto taxes are bad in the U.S. or Europe. In India, they’re brutal. Here’s what you’re really paying when you move crypto abroad:
- 30% capital gains tax on profits (no matter how long you held it)
- 1% TDS on every transaction over ₹50,000
- 18% GST on withdrawals, staking, and even margin trades (imposed by exchanges like Bybit as of July 2025)
That’s not 30% + 1% + 18%. It’s worse. Because TDS and GST are applied on top of the already-taxed value. If you bought Bitcoin at ₹30 lakh and sold it for ₹45 lakh, your profit is ₹15 lakh. You pay ₹4.5 lakh in capital gains tax. Then, on the ₹15 lakh profit, you pay ₹15,000 in TDS. Then, when you withdraw to a foreign wallet, you pay ₹2.7 lakh in GST. Total tax? Over ₹7.35 lakh-nearly 50% of your profit.
The Income Tax Department doesn’t guess. They get data from exchanges. WazirX, CoinDCX, ZebPay-all report every transaction to the government. If you sent crypto to Binance or Coinbase and didn’t declare it, they already know. And they’ve started matching those transfers with foreign bank accounts using the new Crypto-Asset Reporting Framework (CARF).
What Happens If You Try to Bypass the Rules?
Some people try P2P trades-selling crypto for INR and having someone abroad send you USD. Others use decentralized exchanges or mixers. But here’s the truth: it’s getting harder, and riskier.
In June 2025, the Enforcement Directorate sent notices to 25 offshore exchanges-including Binance, KuCoin, and Bybit-demanding they comply with Indian KYC rules for Indian users. If you’re using an unregistered platform, your account can be frozen. One Reddit user, CryptoTravellerIN, reported getting an email from WazirX saying their account would be locked unless they submitted FEMA documents within 72 hours. That’s not a threat. That’s happening.
Even if you send crypto directly from your wallet to a foreign wallet (without using an Indian exchange), the RBI’s new KYC rules require all crypto platforms serving Indians to monitor and report transactions over ₹10 lakh ($12,000) within 24 hours. Chainalysis data shows Indian cross-border crypto flows dropped 32% in the first half of 2025-not because people stopped trading, but because they couldn’t complete transfers legally.
Real People, Real Problems
A July 2025 survey of 1,247 Indian crypto users found:
- 68% had a transaction frozen when trying to send crypto abroad
- 42% waited more than 7 days for document verification
- 57% couldn’t get bank certification for FEMA compliance
- 49% struggled to value their crypto at the exact moment of transfer
Valuing crypto is tricky. The government requires you to use the RBI’s daily exchange rate at the time of transfer. But if you send BTC from India at 3 PM IST and it arrives in the U.S. at 1:30 AM EST, which rate do you use? The Indian rate? The U.S. rate? The IRS doesn’t care. The CBDT does. And they’ve made it clear: if your records don’t match the RBI’s published rate, you’re in violation.
What Can You Do Right Now?
You can’t ignore the rules. But you can work within them.
- Use only FIU-IND registered exchanges-like CoinDCX, ZebPay, or WazirX. Avoid unregistered platforms.
- Keep perfect records-every buy, sell, transfer, and wallet address. Use software that auto-logs transactions in INR using RBI rates.
- Declare everything-Schedule VDA in your ITR. Even if you didn’t make a profit. Even if you just moved it. Failure to disclose = 60% penalty.
- Plan transfers under $250,000-If you need to move more, apply for FEMA approval early. It takes 3-6 weeks.
- Don’t use mixers or P2P to hide transfers-The government is tracking blockchain addresses. If you’re sending crypto to a known mixer, you’re flagged.
The Future Won’t Get Easier
India is aligning with global standards-not to open up, but to clamp down harder. The Financial Stability Board (FSB) peer review in October 2025 will push India to implement automatic tax data sharing with over 100 countries. That means your crypto holdings abroad will soon be reported directly to the Indian tax department-no need for you to declare it.
Experts like Dr. Rajeshree Agarwal warn that India’s tax burden on crypto is among the highest in the world. Only Nigeria and Pakistan tax crypto more. And with only 8-10 exchanges expected to survive by the end of 2025, your options for compliant transfers are shrinking.
Don’t expect a policy shift. Finance Minister Nirmala Sitharaman has said clearly: "Cryptocurrencies cannot be a legal currency in India." That means no legal tender status. No freedom. Just regulation, taxation, and control.
Bottom Line: Play It Safe
If you’re moving crypto out of India, you’re not just sending digital money-you’re navigating a minefield of taxes, reporting, and enforcement. The government isn’t trying to stop you. They’re trying to make sure you pay, report, and follow every rule. There’s no gray area anymore. If you skip a step, you’re not a crypto pioneer-you’re a target.
Do the paperwork. Pay the taxes. Keep the records. And don’t assume you’re invisible. In 2025, your crypto movements are tracked, tagged, and taxed. The only safe way out is the legal one.
Can I send crypto from India to the U.S. legally?
Yes, but only if you follow all rules: declare the transfer in your tax return (Schedule VDA), pay 30% capital gains tax and 1% TDS, use a registered Indian exchange, and ensure the transfer value doesn’t exceed $250,000 per year without FEMA approval. Every transaction must include full KYC details under the FATF Travel Rule.
What happens if I don’t report my foreign crypto holdings?
You face a 60% penalty on the undisclosed value under Section 158B of the Income Tax Act. This is in addition to back taxes and interest. The Income Tax Department receives data from Indian exchanges and foreign platforms via CARF, so non-disclosure is easily detected. Criminal prosecution is also possible for repeated or large-scale evasion.
Do I need to pay GST when sending crypto abroad?
Yes. Exchanges like Bybit and CoinDCX now charge 18% GST on all crypto withdrawals, including cross-border transfers. This applies regardless of whether you made a profit. The tax is collected by the exchange at the time of transfer and remitted to the government.
Can I use Binance or Coinbase to send crypto from India?
You can, but only if you used an Indian exchange first. Direct transfers from Indian wallets to Binance or Coinbase are blocked unless the platform complies with Indian KYC rules. In June 2025, the Enforcement Directorate demanded Binance and KuCoin comply with Indian regulations-or face blocking. Most users now route transfers through registered Indian exchanges like ZebPay or CoinDCX.
Is there a limit on how much crypto I can send abroad?
Yes. Under FEMA, Indian residents cannot send more than $250,000 worth of crypto abroad per year without prior approval from an authorized dealer bank. This limit applies to all foreign assets combined, including crypto, stocks, and property. Exceeding it without approval can lead to transaction rejection and legal action.
Do I need to link my Aadhaar to my crypto wallet?
Yes. Since 2023, all Indian crypto exchanges require PAN-Aadhaar linking for account activation. This is mandatory under KYC rules. Without it, you cannot trade, withdraw, or transfer crypto. The government uses this to track all crypto activity back to your identity.
How do I value my crypto for tax purposes when sending it abroad?
You must use the RBI’s daily exchange rate for the cryptocurrency at the exact time of transfer. For example, if you send 0.5 BTC on June 10, 2025, at 11:30 AM IST, you use the INR/BTC rate published by RBI at that time. Exchanges automatically calculate this, but if you’re using a personal wallet, you must manually record the rate from RBI’s website. Failure to use the correct rate leads to tax discrepancies and penalties.
Are NFTs treated the same as crypto when moving them abroad?
Yes. Since February 2025, NFTs are explicitly included under the definition of Virtual Digital Assets (VDAs). All rules for crypto-taxes, TDS, GST, FATF Travel Rule, and FEMA limits-apply to NFTs too. Sending an NFT abroad triggers the same reporting and tax obligations as sending Bitcoin.
