Indian regulators continue to hold back on introducing comprehensive crypto regulations due to concerns that it could legitimize digital assets and pose systemic risks.
Reluctance for Comprehensive Regulation
According to a Reuters report citing documents, the Reserve Bank of India asserts that regulating cryptocurrencies may create systemic risks. The document states that legitimizing cryptocurrencies through regulation would increase their prevalence in the market. An outright ban on cryptocurrencies could reduce risks associated with speculative assets, but it would not control peer-to-peer transfers and trades on decentralized platforms.
Current Crypto Rules in India
Currently, India lacks clear legislation in the crypto space, although there is a 30% tax on digital asset gains, as well as requirements for foreign crypto exchanges to register. At the end of 2023, India's Financial Intelligence Unit (FIU) demanded blocks on global exchanges like Binance and KuCoin for failing to register.
Growing Crypto Adoption in India
Despite the cautious stance towards the cryptocurrency industry, India is a leader in crypto adoption. In 2025, India ranked first in the Global Crypto Adoption Index according to Chainalysis. Minister Jayant Chaudhary reported a 19% growth in his crypto portfolio, although experts note a gap between adoption metrics and actual usage.
Thus, Indian regulators continue to cautiously approach the issue of cryptocurrencies, recognizing the risks of legitimization and systemic threats, while the country demonstrates a high level of adoption of digital assets.
