The post Reserve Bank of India (RBI) still favors crypto prohibition amid tax evasion fears appeared on BitcoinEthereumNews.com.
Tax authorities, meanwhile, are concerned about widespread underreporting. In the financial year ended March 2023, fewer than a quarter of the 645,000 individuals who transacted in crypto actually declared those gains on their tax returns. Transactions executed on offshore exchanges and peer-to-peer platforms, especially those denominated in rupees, remain difficult to track, trace and tax. Indian crypto investors have been operating in a regulatory grey zone since the Supreme Court struck down the RBI’s 2018 ban. It is neither outright illegal nor clearly regulated. A 2021 draft bill to ban private cryptocurrencies was never presented and policy discussions have been repeatedly delayed. While the government has spoken of balancing innovation with risk management, the latest internal documents suggest key agencies are still not ready to embrace digital assets
The post Is India moving back towards a crypto ban? appeared on BitcoinEthereumNews.com.
India’s crypto policy appears to be moving backwards. This is an interestingly glum turn, especially as global markets push for better regulations. According to internal government documents, the Reserve Bank of India (RBI) is now actively for a policy that is “leaning towards (the) prohibition” of crypto. RBI’s push for a crypto ban The RBI has reportedly stated that banks and financial institutions should be barred from gaining exposure to cryptocurrencies and privately issued stablecoins. As per Reuters, the concern is that allowing regulated lenders to interact with crypto could bring chaos to the formal financial system. Another concern is that it would allegedly increase contagion risks. The RBI also believes that foreign currency-backed stablecoins are a threat to monetary sovereignty. Even the idea of rupee-backed tokens doesn’t have much support since there might be the risk of reducing th
The post India Crypto Regulation: RBI’s Prohibition Stance and Market Impact appeared on BitcoinEthereumNews.com.
India’s crypto regulation debate just got sharper. The Reserve Bank of India is pushing to bar banks and financial institutions from holding, trading, or gaining any exposure to crypto assets — a stance that puts one of the world’s largest crypto markets squarely at odds with its own central bank. Key takeaways The RBI wants banks and financial institutions barred from all crypto asset exposure as part of a policy leaning toward prohibition. The central bank warns that privately issued stablecoins backed by foreign currencies threaten India’s monetary sovereignty, while rupee-backed stablecoins risk eroding government revenue and financial stability. Fewer than 25% of the roughly 645,000 individuals who conducted crypto transactions in the financial year ending March 2023 reported them on their tax returns. India’s tax department flags offshore exchanges, private wallets, a
The post India’s RBI Renews Bitcoin Prohibition Push Affecting 39 Million Traders appeared on BitcoinEthereumNews.com.
Crypto News India’s central bank has renewed its push to keep cryptocurrency outside the regulated financial system, reviving a prohibition-oriented stance that most directly affects Bitcoin (BTC) and other altcoin holdings. Internal government documents dated May and June recommend barring banks and financial institutions from holding, trading, or taking any exposure to crypto assets and privately issued stablecoins. The Reserve Bank of India (RBI) argues that isolation limits financial-contagion risk to domestic lenders. While Indian banks are technically permitted to engage with the sector, most major institutions have avoided it after years of cautionary signals, leaving the industry to operate in a persistent regulatory grey zone that neither legalises nor clearly governs digital-asset activity. The RBI extended its warning to stablecoins, tokens pegged to fiat cu
The post India’s Central Bank Renews Push to Keep Crypto Out of the Financial System appeared on BitcoinEthereumNews.com.
The Reserve Bank of India (RBI), the country’s central bank, has reiterated its support for a cryptocurrency policy that favors a prohibition-oriented approach. The RBI wants banks and financial institutions barred from any exposure to crypto assets and privately issued stablecoins. Why India’s Central Bank Leans Toward Crypto Prohibition The RBI has warned about crypto risks repeatedly and now argues for policies “leaning towards prohibition,” according to documents reviewed this week by Reuters. It wants digital assets kept outside the regulated financial system. Officials say the aim is to limit contagion risks to lenders. The stance revives a fight the RBI lost in 2018, when a court struck down policies that had effectively banned crypto dealings. Since then, digital assets have existed in a grey zone. Indian banks are currently allowed to engage with cryptocu
The post India’s RBI renews anti crypto stance as tax reporting concerns persist appeared on BitcoinEthereumNews.com.
India’s central bank has renewed its recommendation for a cryptocurrency policy leaning toward prohibition, while tax authorities have warned that offshore trading continues to make crypto tax enforcement difficult. Summary India’s central bank has again backed a cryptocurrency policy leaning toward prohibition while warning against bank exposure to crypto assets and private stablecoins. Tax authorities have said offshore exchanges, private wallets and peer to peer crypto trades continue to make tax reporting and enforcement more difficult. Internal government documents show India is still reviewing its long term crypto policy even as millions of investors continue to hold digital assets. According to internal government documents reviewed by Reuters, the Reserve Bank of India (RBI) has reiterated its long-standing position that cryptocurrencies and privately issued sta
India’s central bank has renewed its recommendation for a cryptocurrency policy leaning toward prohibition, while tax authorities have warned that offshore trading continues to make crypto tax enforcement difficult. According to internal government documents reviewed by Reuters, the Reserve Bank…
RBI's crypto prohibition stance may stifle innovation and push crypto activities underground, complicating tax enforcement and economic growth.
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RBI submission cites 54 FIU-registered providers and 3.93 crore users, as stablecoin market cap nears $311B. India’s path tightens. Practical moves founders can take now.
