India's Central Bank Pushes for Crypto Ban to Fight Tax Evasion
The Reserve Bank of India continues to advocate for outlawing cryptocurrency, citing concerns over tax evasion and financial stability.
If you've been hoping India would warm up to crypto anytime soon, the Reserve Bank of India (RBI) has some cold water to throw on that idea. According to a Reuters report covered by CoinDesk, India's central bank is still firmly in the "ban it" camp when it comes to digital assets, with tax evasion being one of its primary concerns.
The RBI's stance isn't exactly new, but it's a notable signal in a country where millions of retail investors have piled into crypto markets despite regulatory uncertainty. The central bank apparently believes that allowing crypto to operate freely creates too many gaps for people to hide money from tax authorities — a concern that's not unique to India, but one the RBI takes seriously enough to keep pushing for an outright prohibition.
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This puts the RBI at odds with a global trend where many regulators are moving toward structured oversight rather than outright bans. Countries like the U.S. and members of the European Union have been building regulatory frameworks to bring crypto under the tax and compliance umbrella rather than trying to eliminate it entirely. India's approach, if the RBI gets its way, would be a significant outlier.
For everyday crypto holders in India, this ongoing tug-of-war between the central bank and the broader crypto community means continued uncertainty. India has previously imposed steep taxes on crypto gains — a 30% flat tax, for example — which some argue already creates a compliance mechanism without needing a ban. Whether policymakers will side with the RBI or push for a more nuanced regulatory framework remains an open question.
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