{"id":2399,"date":"2025-06-07T15:26:57","date_gmt":"2025-06-07T15:26:57","guid":{"rendered":"https:\/\/bitunikey.com\/news\/india-crypto-rules-still-in-limbo-as-rbi-says-no-thanks\/"},"modified":"2025-06-07T15:26:59","modified_gmt":"2025-06-07T15:26:59","slug":"india-crypto-rules-still-in-limbo-as-rbi-says-no-thanks","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/india-crypto-rules-still-in-limbo-as-rbi-says-no-thanks\/","title":{"rendered":"India crypto rules still in limbo as RBI says \u2018no thanks\u2019"},"content":{"rendered":"

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Despite mounting pressure for regulatory clarity, the Reserve Bank of India remains firmly opposed to cryptocurrencies, citing risks to monetary policy and financial stability. <\/p>\n

RBI Governor Sanjay Malhotra reaffirmed the central bank\u2019s stance even as a government committee reviews policy options and the Supreme Court presses for clearer guidelines. The tension highlights India\u2019s ongoing regulatory deadlock, where legal, judicial, and financial forces continue to clash over the future of digital assets.<\/p>\n

Malhotra underlined during a news conference following the announcement that the RBI is still concerned about the possible threats that cryptocurrencies could pose to monetary policy and financial stability.<\/p>\n

\u201cRBI has maintained a consistent stance on this issue. A [government] committee is currently examining the matter. We remain concerned about the potential risks crypto poses to financial stability and monetary policy,\u201d Malhotra said<\/a>.<\/p>\n

The comments come as a government committee continues examining cryptocurrency regulation. India is also expected to release a comprehensive policy discussion paper in June 2025 following mounting pressure from the Supreme Court for regulatory clarity.<\/p>\n

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India\u2019s Supreme Court pushes for comprehensive regulation<\/h3>\n

In recent proceedings, the Supreme Court has questioned the government\u2019s delay in establishing clear cryptocurrency policies. The justices also noted the absence of proper regulatory frameworks has created confusion in the digital asset space.<\/p>\n

Given the advancements in the global financial system, a Supreme Court bench led by Justices Surya Kant and N Kotiswar Singh stated that prohibiting cryptocurrencies is not feasible.<\/p>\n

The country has maintained an ambiguous stance since the Supreme Court overturned RBI\u2019s 2018 banking ban on cryptocurrency transactions in March 2020.<\/p>\n

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India\u2019s cryptocurrency regulation saga began in 2018 when RBI issued a circular prohibiting banks and financial institutions from providing services to cryptocurrency businesses. <\/p>\n

The prohibition was later struck down by the Supreme Court in March 2020. The court ruled that the banking ban was disproportionate and violated constitutional rights under Article 19(1)(g) of the Indian Constitution.<\/p>\n

Following the court ruling, RBI instructed banks not to block cryptocurrency transactions based on the invalidated circular. This provided a temporary relief to the crypto industry.<\/p>\n

RBI\u2019s persistent opposition to private cryptocurrencies<\/h3>\n

Despite legal setbacks, RBI Governor Shaktikanta Das has consistently characterized cryptocurrencies as posing \u201chuge risks to financial stability\u201d and called them a \u201cclear danger\u201d to the economic system.<\/p>\n

Previous statements from Das suggested that all cryptocurrencies should be banned due to their potential to undermine India\u2019s financial and macroeconomic stability.<\/p>\n

The central bank has remained firm in its belief that crypto could undermine India\u2019s financial stability. It has also cited concerns about its use in money laundering and its potential impact on monetary policy effectiveness.<\/p>\n

In 2022, India announced a 30% tax on crypto gains and a 1% TDS on cryptocurrency transactions. This remains one of the world\u2019s highest cryptocurrency tax regimes.<\/p>\n

<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Despite mounting pressure for regulatory clarity, the Reserve Bank of India remains firmly opposed to cryptocurrencies, citing risks to monetary policy and financial stability. RBI Governor Sanjay Malhotra reaffirmed the…<\/p>\n","protected":false},"author":1,"featured_media":2400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/2399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=2399"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/2399\/revisions"}],"predecessor-version":[{"id":2401,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/2399\/revisions\/2401"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2400"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=2399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=2399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=2399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}