India Delays Crypto Framework Over Systemic Risk Concerns
India is opting against comprehensive cryptocurrency regulation, diverging from global counterparts like the U.S. and Japan. A government document reviewed by Reuters cites systemic risks as the primary deterrent, with the Reserve Bank of India (RBI) asserting that effective oversight remains impractical.
The stance contrasts sharply with the U.S., where regulatory advancements under the Trump administration have fostered crypto adoption. Meanwhile, China explores a yuan-backed stablecoin despite its ban, and other nations like Australia advance their own frameworks.
New Delhi fears formal recognition could legitimize cryptocurrencies, amplifying financial instability. The approach leaves India’s crypto market in limbo—neither banned nor integrated—while global momentum builds.
