Is Buying or Using USDT Legal in India? What Are the Regulations?
Cryptocurrency adoption in India has grown rapidly, and USDT (Tether) has emerged as one of the most popular choices. Many traders and freelancers use USDT as a safe way to store value, trade crypto pairs, or receive international payments. But one common question remains: Is buying or using USDT legal in India?
The Legal Status of USDT in India
At present, USDT is not illegal in India. The government has not banned buying, selling, or holding it. However, it is not recognized as legal tender, meaning you cannot use it like rupees to pay at shops or businesses.
Instead, USDT and other cryptocurrencies are classified as Virtual Digital Assets (VDA). This classification brings them under a specific set of financial and tax rules.
Key Regulations You Should Know
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Taxation on Profits
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Any profit from trading or selling USDT is taxed at a flat 30% rate.
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No deductions are allowed except for the cost of acquisition.
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TDS (Tax Deducted at Source)
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A 1% TDS applies on certain crypto transactions above a threshold.
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This is deducted automatically by most exchanges.
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KYC and AML Compliance
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Exchanges and exchangers must follow KYC (Know Your Customer) and AML (Anti-Money Laundering) rules.
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Users need to verify identity before buying or selling USDT.
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Banking Restrictions
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Banks in India do not directly deal with crypto. That’s why most people use trusted exchangers and P2P methods.
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Is It Safe to Buy USDT in India?
Yes, it is safe as long as you use a regulated and reliable exchanger. The main risk comes from unverified P2P sellers or scam platforms.
For beginners, it is wise to use platforms that:
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Offer transparent fee structures.
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Provide instant exchange services.
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Comply with KYC rules.
One such option is Changebuz.com, often recommended by users because it charges only 1.5% fees and provides instant USDT exchange with INR.
Final Thoughts
Buying or using USDT in India is legal under current rules, but it is regulated as a virtual asset. Users should be aware of the 30% tax, 1% TDS, and KYC requirements before trading.
If you want to deal in USDT safely, always choose trusted exchangers. Platforms like Changebuz.com make it easier by offering secure, instant, and low-cost (1.5% fee) USDT exchanges without the risks of unverified P2P deals.