Overview

• An Indian government paper seen by Reuters indicates officials do not plan comprehensive crypto legislation, citing fears that formal regulation would legitimize the sector and make it systemic.
• The Reserve Bank of India argues that effective oversight of decentralized assets is difficult in practice, while an outright ban would not stop peer‑to‑peer transfers or decentralized exchange activity.
• Authorities will continue a containment model using punitive taxes and anti–money‑laundering checks, with global exchanges allowed to operate after local registration, such as recent enforcement leading to Bybit’s return after a penalty.
• The document estimates Indians hold about $4.5 billion in crypto and says current use is not a threat to financial stability.
• U.S. passage of the GENIUS Act on stablecoins is flagged as a development with global effects, and New Delhi is watching international moves as it maintains its cautious stance after shelving a 2021 ban bill and deferring a 2024 policy paper.