Yes, cryptocurrency trading is legal in India. The Supreme Court lifted the Reserve Bank of India's banking ban on crypto in 2020, allowing trading to resume under regulated circumstances.

The Securities and Exchange Board of India said it would seize 48.4 billion rupees ($570 million) from Jane Street, which it claimed is the total amount of “unlawful gains” made by the firm ...

India's markets regulator is considering a series of tweaks to its derivative trading rules, according to two sources, as it seeks to address risks arising from explosive growth in options trading.