India’s RBI Stands Firm Against Cryptocurrencies
The Reserve Bank of India (RBI) continues to oppose cryptocurrencies, despite growing calls for regulatory clarity. RBI Governor Sanjay Malhotra reiterated the RBI’s stance against cryptocurrencies, citing risks to monetary policy and financial stability.The central bank remains opposed to digital assets, even as a government committee reviews policy options and the Supreme Court pushes for clearer guidelines.
the RBI’s stance highlights India’s ongoing regulatory deadlock. Legal,judicial,and financial forces continue to clash over the future of digital assets. Malhotra emphasized the RBI’s concerns during a news conference. “We remain worried about the potential risks crypto poses to financial stability and monetary policy,” he said.
The Supreme Court has questioned the government’s delay in establishing clear cryptocurrency policies. Justices Surya Kant and N Kotiswar Singh noted that prohibiting cryptocurrencies is not feasible given global financial advancements. India is expected to release a thorough policy discussion paper in June 2025.
India’s cryptocurrency regulation saga began in 2018 when the RBI issued a circular prohibiting banks from providing services to crypto businesses. This ban was overturned by the Supreme Court in 2020, providing temporary relief to the crypto industry.
RBI Governor Shaktikanta Das has consistently characterized cryptocurrencies as posing “huge risks to financial stability.” The central bank remains firm in its belief that crypto could undermine India’s financial stability and has cited concerns about money laundering and its impact on monetary policy effectiveness.
In 2022, India introduced a 30% tax on crypto gains and a 1% TDS on transactions, one of the world’s highest crypto tax regimes.
