Indian Compliance & Tax

What is FEMA and does it apply to crypto held abroad?

FEMA, the Foreign Exchange Management Act, is the Indian law governing cross-border money movement and foreign asset holdings by residents. Its application to crypto held abroad is still evolving, because crypto is not yet clearly classified as currency, security, or foreign asset under FEMA. In practice, sending money overseas to buy crypto can engage FEMA and Liberalised Remittance Scheme limits, and holdings may also carry income-tax disclosure duties under Schedule FA. For example, funding an offshore exchange account through outward remittance is the point where FEMA questions typically arise. The treatment remains unsettled, so professional guidance is sensible.

This is general information, not tax advice. Tax rules change and depend on your individual circumstances — verify the current rules or consult a qualified tax professional before acting.