Indians Get a Wild New Route to US Stocks-But No Bitcoin for You!

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a shiny, regulated doorway for Indian crypto fans to tiptoe into crypto‑flavored equities-while Bitcoin ETFs remain outside like they forgot the secret password.

The International Financial Services Centres Authority (IFSCA) has approved Zerodha, Groww, Angel One, and Upstox to provide access to international and US stocks via the GIFT City International Financial Services Centre. According to Moneycontrol, the services should go live in two to three months-just enough time for everyone to pretend they understand “technology integration” and “compliance.”

The Approval

Zerodha and Upstox will act as broker‑dealers, routing trades through international clearing partners like ViewTrade International, Interactive Brokers, and Alpaca Securities. Meanwhile, Groww and Angel One will play the role of Global Access Providers-think of them as the tour guides who promise you’ll see the sights but can’t guarantee you won’t get lost.

Investments will fall under the Reserve Bank of India’s Liberalised Remittance Scheme, which lets residents send up to $250,000 abroad each year. The approvals build on GIFT City’s Global Access Provider framework, introduced in August 2025 to create a cheaper, regulated channel for overseas investing. Demand has been boosted by global hype around big US listings-like SpaceX’s IPO, which probably made more noise than a Mel Brooks musical number.

What It Means for Crypto Investors

The big selling point? Regulation. Indian crypto investors have long dealt with the joys of hacks, withdrawal freezes, and exchanges that vanish faster than a magician’s rabbit. US‑routed brokerage accounts, on the other hand, sit inside a regulated clearing structure and come with Securities Investor Protection Corporation coverage up to $500,000 if a broker collapses. It’s not quite a superhero cape, but it’s close.

But Bitcoin ETFs Stay Blocked-Here’s How

Here’s the plot twist: this shiny new route does not include spot Bitcoin ETFs. IFSCA’s August 12, 2025 circular revised the Global Access framework to exclude crypto‑assets and crypto‑underlying products from the list of allowed “financial products.” In other words: “You can look at the Bitcoin ETF, but you can’t touch it.”

Global Access Providers are barred from offering crypto‑asset products, with a compliance deadline of October 31, 2025. Following the circular, Vested Finance delisted major Bitcoin and Ethereum trusts, while INDmoney went full dramatic exit-blocking buys, halting sells, and liquidating existing crypto‑linked ETF holdings. Subtlety is overrated anyway.

The rule is simple: a company about crypto (like Coinbase) is fine; a fund made of crypto (like IBIT) is not. It’s the difference between watching a cooking show and actually eating the food.

The Tax Picture, and Why It Isn’t a Loophole

Taxes matter here, but not in the “abracadabra, your 30% crypto tax disappears” way some optimists imagine. India taxes virtual digital assets at a flat 30% under Section 115BBH, plus a 1% TDS, plus no loss offsets-basically the financial equivalent of being hit with a rubber chicken repeatedly.

Crypto‑proxy equities, however, are treated as foreign shares, which fall under general capital‑gains rules. Loss set‑off is allowed, and rates vary by holding period and income slab. But this isn’t a loophole for direct Bitcoin exposure-because the very thing that would provide that exposure, a spot ETF, is exactly what IFSCA has blocked. No magic tricks today.

Investors should also remember that LRS remittances above ₹10 lakh attract a 20% Tax Collected at Source (refundable later), and foreign holdings must be disclosed annually. Tax treatment is fact‑specific, so talk to a qualified tax professional-preferably one who doesn’t faint when you say “crypto.”

Big picture: India is keeping crypto at arm’s length-like a relative who shows up uninvited but still gets a plate at dinner. GIFT City gives investors a cleaner, regulated way to bet on crypto‑adjacent equities, but the front‑door Bitcoin ETF remains locked, bolted, and guarded by a bureaucrat with a clipboard.

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2026-06-16 16:52