India is hesitant to introduce a comprehensive crypto law, opting for partial oversight to mitigate systemic risks. The Reserve Bank of India’s skepticism stems from concerns about effective regulation and wider adoption. Despite heavy taxation, Indians hold an estimated $4.5 billion in digital assets, with global exchanges permitted to operate with restrictions.

The government is cautious about stablecoins, citing potential market shocks and risks to domestic payment systems. India’s approach involves tightening oversight without granting legal recognition to digital assets. Demand persists among investors despite tough tax rules, prompting calls for clearer regulations from the Supreme Court and industry leaders.

The Central Board of Direct Taxes is evaluating existing rules on derivatives and cross-border trades, addressing concerns about excessive tax burdens. India plans to implement the OECD’s Crypto-Asset Reporting Framework by April 2027 for improved compliance and transparency. The country’s stance reflects years of shifting signals on crypto regulation, including a push for a global regulatory framework during its G20 presidency.

Read more at Yahoo Finance: India Stalls Full Crypto Framework, Citing Systemic Risk Fears: Report