RBI Flags Crypto as Financial Stability Risk Amid Supreme Court Push for Regulation

India's central bank has intensified its warnings about cryptocurrency risks, with RBI Governor Sanjay Malhotra citing potential threats to financial stability and monetary policy. The Supreme Court's recent intervention adds pressure for regulatory clarity, leaving the industry in limbo—taxed but unregulated.

"We are concerned about crypto because that can hamper financial stability and monetary policy," Malhotra stated during a monetary policy briefing. The remarks echo years of RBI skepticism toward digital assets, now amplified by judicial scrutiny.

Legal and regulatory tensions are mounting as India's crypto sector operates without clear guidelines. The Supreme Court has demanded policy resolution from the government, highlighting the growing disconnect between market activity and oversight frameworks.