RBI Urges Stricter Crypto Rules as India's Crypto Policy Remains in Limbo

The Reserve Bank of India (RBI) has once again emphasized its stance on stricter cryptocurrency regulations, sparking new uncertainty around India's crypto policy.

According to official documents reviewed by Reuters, the RBI has advised that India's crypto policies should lean towards prohibiting digital currencies. Meanwhile, India's tax department has noted that cryptocurrencies traded through foreign exchanges are difficult to track.

The Indian government has been working on a bill to outlaw privately held cryptocurrencies, but it has yet to be presented to parliament. Additionally, there is a discussion paper on virtual assets that has undergone several postponements.

Despite the lack of clear regulations, India's crypto market continues to grow. Estimates suggest that around 39 million Indians are holding approximately $2.1 billion worth of cryptocurrencies as of late May.