India crypto rules still in limbo as RBI says ‘no thanks’

Despite the growing pressure for regulatory clarity, the Bank of India reserve remains firmly opposed to cryptocurrencies, citing risks for monetary policy and financial stability.

RBI Governor Sanjay Malhotra has reaffirmed the central bank’s position, even if a government committee examines political options and the Supreme Press Court for clearer directives. The tension highlights the ongoing regulatory impasse in India, where legal, judicial and financial forces continue to compete on the future of digital assets.

Malhotra highlighted at a press conference following the announcement that RBI is still concerned about the possible threats that cryptocurrencies could devote to monetary policy and financial stability.

“RBI has maintained a coherent position on this issue. HAS [government] The Committee is currently examining the issue. We remain concerned about the potential risks that Crypto poses of financial stability and monetary policy “,” Malhotra said.

The comments come then that a government committee continues to examine the regulation of cryptocurrencies. India should also publish a complete discussion document on policies in June 2025 following the increasing pressure of the Supreme Court for regulatory clarity.

The Supreme Court of India is pressure for full regulations

In recent procedures, the Supreme Court has questioned the government’s delay to establish clear cryptocurrency policies. The judges also noted that the absence of appropriate regulatory executives has created confusion in the space of digital assets.

Given the progress of the global financial system, a Supreme Court bench led by judges Surya Kant and N Kotiswar Singh declared This is not possible to ban cryptocurrencies.

The country maintained an ambiguous position since the Supreme Court canceled the RBI banking ban in 2018 on cryptocurrency transactions in March 2020.

The India cryptocurrency regulation saga began in 2018 when RBI published a circular prohibiting banks and financial institutions to provide services to cryptocurrency companies.

The ban was then canceled by the Supreme Court in March 2020. The Court judged that the banking ban was disproportionate and violated constitutional rights under article 19 (1) (G) (G) of the Indian Constitution.

Following the court’s decision, RBI asked banks not to block cryptocurrency transactions based on the unlikely circular. This provided temporary relief to the cryptographic industry.

RBI’s persistent opposition to private cryptocurrencies

Despite the legal setbacks, the Governor of RBI, Shaktikanta Das, has always characterized cryptocurrencies as posing “enormous risks for financial stability” and described them as “clear danger” for the economic system.

Previous declarations of DAS have suggested that all cryptocurrencies should be prohibited because of their potential to undermine the financial and macroeconomic stability of India.

The central bank remained firm in its conviction that the crypto could undermine the financial stability of India. He also cited concerns about his use in money laundering and his potential impact on the effectiveness of monetary policy.

In 2022, India announced a 30% tax on cryptography gains and a 1% TDS on cryptocurrency transactions. This remains one of the highest tax regimes on cryptocurrencies in the world.