The Reserve Bank of India (RBI) has renewed its call for a strict prohibition on cryptocurrency activities, warning that the unregulated market poses significant threats to financial stability and facilitates tax evasion.
The central bank’s latest intervention underscores its persistent opposition to virtual digital assets, even as the Indian government has yet to finalize a comprehensive regulatory regime for the sector.
According to Livemint, the RBI’s position is being reinforced by parallel warnings from the income tax department, which has flagged concerns over crypto transactions conducted outside formal oversight.
The central bank has previously recommended that banks and financial institutions be barred from holding, trading, or gaining exposure to crypto assets and privately issued stablecoins, citing internal documents reviewed by Reuters.
This renewed push highlights the ongoing tension between India’s monetary authority and the broader government, which has been cautious about outright bans due to the sector’s growing popularity and technological potential.
The lack of a clear regulatory framework continues to create uncertainty for investors and businesses operating in the Indian crypto space.