Overview

• RBI Governor Sanjay Malhotra reiterated that cryptocurrencies could hamper financial stability and monetary policy at a press briefing following the central bank’s rate decision.
• Last month a Supreme Court bench urged the government to adopt a clear-cut cryptocurrency policy and compared Bitcoin transactions to illicit “hawala” business.
• Virtual digital assets are taxed with a flat 30% gain tax, a 1% TDS on transactions and GST on exchange services despite lacking formal legal recognition in India.
• An inter-ministerial group comprising RBI, SEBI and finance ministry officials is evaluating global practices as part of a government discussion paper on crypto regulation.
• With India’s crypto market valued at around ₹40,000 crore, investors and exchanges are holding off on new commitments pending policy clarity.