India continues to delay full cryptocurrency regulation, even as ministers report increased personal holdings. Minister Jayant Chaudhary announced a 19% rise in his crypto portfolio to $25,500.
Growth of Ministers' Crypto Holdings
Minister Chaudhary, responsible for skill development and entrepreneurship, stated that their assets were funded by personal savings but did not disclose the names of the tokens held. This marks the second consecutive year that cabinet members have reported virtual asset ownership. According to the Chainanalysis Global Crypto Adoption Index, India ranks first in activity despite regulatory constraints.
Concerns Over Systemic Risks
A Reuters review revealed that authorities fear regulation may legitimize digital assets, potentially creating systemic risks. The Reserve Bank of India emphasized that effectively regulating the sector would be challenging. A complete ban would not halt decentralized trading or peer-to-peer transfers.
New Concerns About Stablecoins
The government report also raised concerns regarding stablecoins, particularly those pegged to the U.S. dollar. Authorities warned that their widespread use could fragment domestic payment systems and weaken the UPI, which underpins digital payments in India. This issue gained urgency after U.S. President Donald Trump signed the GENIUS Act.
Investors continue to seek clarity in regulation, while the personal disclosures of Chaudhary and others illustrate how personal financial stakes are outpacing policymaking. This highlights the ongoing tension in government policy between fostering innovation and managing risks.
