India has emerged as one of the leading countries in cryptocurrency adoption, with Chainalysis ranking it first in its 2025 Global Crypto Adoption Index. However, despite this growth, the country's regulatory framework for crypto remains incomplete.
The Reserve Bank of India (RBI) and other authorities have expressed concerns about financial stability, capital controls, and monetary sovereignty related to cryptocurrency. While these concerns are valid, the lack of a clear regulatory framework can lead to more risks for users.
A balanced framework is needed to address asset classification, disclosures, custody, segregation of customer funds, and standards of conduct. This includes distinguishing between different types of cryptocurrencies and exchanges, and implementing clear rules on licensing, disclosure, and taxation.