According to Reuters, the Indian crypto stance is being reviewed as global regulations on digital assets continue to evolve.
Economic Affairs Secretary Ajay Seth confirmed that the government is reviewing a discussion paper on cryptocurrency, originally scheduled for release in September 2024, to align with changing international policies.
The reassessment came as several countries, including the United States, introduced new crypto-friendly policies. U.S. President Donald Trump recently announced a cryptocurrency working group aimed at revising digital asset regulations and exploring a national cryptocurrency stockpile. Seth emphasized that because operating beyond borders, the Indian crypto stance cannot be unilateral.
Despite India’s strict regulatory framework—including a 30% capital gains tax and a 1% transaction levy—crypto adoption in the country remains significant. However, authorities continue to enforce compliance.
India has had a complex relationship with cryptocurrencies since 2013, when the Reserve Bank of India (RBI) issued its first warnings. A banking ban imposed in 2018 was overturned by the Supreme Court in 2020.
While the government supports blockchain and central bank digital currencies, private cryptocurrencies remain a contentious issue. The RBI maintains that digital currencies pose macroeconomic risks, while market regulators have suggested a multi-agency oversight framework.