India Delays Full Crypto Legislation Amid Financial Stability Concerns

India has opted against implementing a comprehensive regulatory framework for cryptocurrencies, citing potential risks to its formal financial system. A government document reveals the Reserve Bank of India's (RBI) stance that partial oversight—such as taxing crypto profits and monitoring registered exchanges—is preferable to full integration. The central bank warns that broader regulation could inadvertently legitimize assets it views as inherently difficult to control.

While global counterparts like the U.S. and Japan advance crypto legislation, India remains cautious. The RBI specifically highlights stablecoins as a threat to national payment infrastructure, including the widely used Unified Payments Interface. This hesitation persists despite estimated domestic crypto holdings of $4.5 billion.