India delays crypto regulation due to government doubts
Date: 2025-09-11 Author: Gabriel Deangelo Categories: IN WORLD
The Reserve Bank of India (RBI) emphasized in a recent document that the creation of a separate legislative field for digital assets is associated with serious problems. According to the regulator, even with formal norms, it will be difficult to limit the threats associated with the anonymity and decentralized nature of the crypto market.
Instead of strict regulation, the authorities intend to adhere to partial supervision. The report notes that the integration of cryptocurrencies into the country's main financial system may increase risks to stability. At the same time, RBI representatives themselves admit that the emergence of the law would give cryptocurrencies more "legitimacy", but at the same time would provoke an increase in speculative transactions.
Of particular concern is the inability to control P2P transactions and transactions on decentralized exchanges. Despite this, an assessment of Indian investors' investments in cryptocurrencies, which amounts to about $4.5 billion, shows that such assets do not pose a significant threat to the national economy. The current vague tax system is an additional deterrent.
The document explicitly states that developing a unified political approach is "extremely difficult".
Journalists note that foreign crypto exchanges have the opportunity to operate in India subject to registration with a government agency that controls money laundering risks. At the same time, income from transactions with digital assets is subject to higher taxes.
It is interesting that even in the absence of a clear regulatory framework, some government officials publicly demonstrate their participation in the crypto market. For example, the Minister for Skills Development and Entrepreneurship, Jayant Chaudhary, has indicated cryptocurrencies in his declaration for the second year in a row. His assets have grown by 19% in a year and reached about $25,500. His wife's portfolio has also increased, approaching $26,800.
At the same time, public expectations are growing. According to a survey by the Mudrex exchange, conducted among more than 9,000 Indians, the overwhelming majority - 93% - believe it is necessary to create transparent rules for the crypto market. Moreover, 90% of participants said that they would invest more in cryptocurrencies if there was a clear tax policy and a clear government line.
We will add that in 2025, India took first place in the world ranking of cryptocurrency adoption, prepared by the analytical company Chainalysis. This fact once again emphasizes that the country is at the forefront of global interest in digital assets, although domestic rules remain vague.
