Indian regulators have announced that full cryptocurrency legislation is unlikely to be implemented until 2025. Meanwhile, the Reserve Bank of India expresses concerns about legitimizing the sector.
Current Restrictions on Cryptocurrency in India
India currently lacks comprehensive legislation for digital assets, though certain measures are already in place. A 30% tax on profits from cryptocurrency trading increases the cost of speculation, and foreign exchanges must register with Indian regulators to operate legally.
Role of the Central Bank in Cryptocurrency Regulation
The Reserve Bank of India (RBI) fears that regulation could legitimize cryptocurrencies and make the sector systemic. The RBI indicated that even a complete ban on cryptocurrencies would not resolve all issues, as it would not prevent direct peer-to-peer transfers or trading on decentralized exchanges.
Growing Popularity of Cryptocurrencies in India
Despite the strict stance, India remains among the top countries in cryptocurrency adoption. According to the 2025 Geography of Crypto Report by Chainalysis, India leads in all adoption metrics. Some government officials, such as Minister Jayant Chaudhary, have acknowledged holding cryptocurrencies, reporting a 19% increase in the value of their portfolios.
Amid the uncertainty surrounding regulation, the growing popularity of cryptocurrencies in India reflects a paradoxical situation where the industry continues to evolve despite stringent control measures.
