finpeel Answers · India · updated 2026-08-14
Do not treat crypto as an RBI-authorised payment instrument merely because two parties are willing to exchange it. India’s authorised payment-system framework is separate from the PMLA treatment of Virtual Digital Assets, and FIU registration of a VDA service provider does not make a crypto token legal tender or an RBI-authorised payment system.
A VDA transaction may be subject to tax and AML obligations while still sitting outside the ordinary RBI-authorised payment rails.
A business building merchant payments around crypto should separately test payment-system, FEMA, tax and VDA compliance rather than relying on FIU registration alone.
Regulator: RBI / FIU-IND and other competent authorities
Primary sources: FIU-IND — VDA Service Provider Registration / AML-CFT Framework
Directional — not legal advice. Verify with the regulator before committing.
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