New Delhi: The Reserve Bank (RBI) has once again made it clear that it is in favor of a complete ban on cryptocurrencies. On the other hand, the Income Tax Department has also expressed concern that it is difficult to track crypto transactions done through foreign exchanges. Even though the Central Government has not yet decided whether crypto should be legalized or banned, it is clear from the stance of the RBI and the Income Tax Department that the big agencies of the country are very serious about the dangers associated with these digital assets.
The Central Bank believes that banks or other financial institutions should not be allowed to invest or transact in cryptocurrencies or private stablecoins. RBI says that this is necessary to protect the country's big economy from any major fluctuations in the crypto market. According to a Reuters report, an official, on condition of anonymity, said that the Reserve Bank wants to keep crypto out of the country's official financial system. At present, there is no legal restriction on Indian banks for crypto transactions, but due to constant warnings from RBI, most of the big banks are staying away from this sector.
The Income Tax Department believes that it is difficult to trace the deals done through foreign crypto exchanges. This creates difficulty in collecting taxes and increases the scope for tax evasion. According to Income Tax Department data, there were about 3.9 crore (39 million) crypto traders in India by the end of May. It is estimated that he has digital assets worth about $2.1 billion.
The policy regarding cryptocurrency in India has been hanging in the balance for many years.
2018: The Supreme Court had canceled the RBI order, which had banned crypto firms from providing banking services. Since then, crypto business is going on in the country without any clear law.
2021: The government had prepared a draft bill to ban private cryptocurrencies, but it was not presented in Parliament. The documents for discussion related to this were also postponed several times.
RBI has also expressed deep concern about stablecoins. He says that stablecoins linked to foreign currencies can affect India's economic sovereignty. At the same time, if stablecoins linked to rupee are introduced, it may reduce the government's earnings by issuing currency and may also affect economic stability in times of market crisis. Therefore, RBI believes that such digital assets should be kept completely separate from the official financial system of the country.
All this is happening at a time when attitudes towards crypto are completely different in some parts of the world. For example, when former US President Donald Trump's income figures for 2025 were revealed, the world was shocked. According to the report, Trump and his family earned more than $1.4 billion last year alone from crypto-related businesses, which is more than Rs 13,440 crore in Indian rupees. This information was released last week by the US Office of Government Ethics.
