Cryptocurrencies have rapidly gained acceptance across the globe, with nations adopting diverse strategies to regulate and incorporate digital assets into their economies. Amid this global shift, questions linger about India’s stance on cryptocurrencies and its vision for the future of this burgeoning industry.
World Embraces Crypto:
As US President Donald Trump signed an executive order on Thursday to promote the advancement of cryptocurrencies in the U.S. and to work toward potentially developing a national digital asset stockpile and Singapore have been proactive in establishing clear regulatory frameworks for cryptocurrencies. El Salvador has already declared Bitcoin as legal tender, signaling a bold embrace of digital assets. Meanwhile, Europe is advancing its Markets in Crypto-Assets (MiCA) regulation to harmonize crypto policies across the European Union.
Such developments underscore the increasing recognition of cryptocurrencies as a legitimate component of the global financial system, driving innovation in blockchain technology and fintech.
India’s stance on crypto
India’s policy on cryptocurrency has been evolving over the years, with a mix of caution and interest. Here is an overview of the current stance as of 2025:
Regulatory Ambiguity: While cryptocurrencies like Bitcoin and Ethereum are not outright banned in India, they are not officially recognized as legal tender. The Reserve Bank of India (RBI) has expressed concerns over their use, citing risks to financial stability and consumer protection.
Taxation: In 2022, the Indian government introduced a 30% tax on income from virtual digital assets, including cryptocurrencies, along with a 1% tax deducted at source (TDS) on all transactions exceeding a specified limit. This move was seen as an attempt to regulate rather than ban cryptocurrencies outright.
Proposed Legislation: The government has repeatedly indicated plans to introduce comprehensive cryptocurrency legislation. The proposed Cryptocurrency and Regulation of Official Digital Currency Bill has been discussed but not yet passed. It is expected to regulate private cryptocurrencies while promoting the development of India’s Central Bank Digital Currency (CBDC), the Digital Rupee.
Digital Rupee Initiative: India launched pilot programs for the Digital Rupee in late 2022, signaling a strong interest in blockchain-based financial systems while maintaining government control.
Skepticism and Warnings: The RBI and other authorities have issued warnings to the public about the speculative nature and risks of cryptocurrencies, including fraud, volatility, and potential misuse for illicit activities.
In summary, India’s policy reflects a cautious approach, emphasizing regulation and taxation rather than outright acceptance or prohibition. The focus remains on developing a government-backed digital currency while closely monitoring the cryptocurrency ecosystem.
