Even though India leads the world in crypto adoption, the country's authorities are not keen to create legislation to regulate virtual assets.
As per a recent Reuters report , India doesn't want to bring crypto regulation legislation and instead wants to maintain partial oversight because it fears the move could grant crypto assets "legitimacy."
Related: What is Crypto? Cryptocurrency explained
Reuters mentions a government document that cites the Reserve Bank of India's (RBI) view that it would be difficult to contain the risks posed by crypto through regulation. It also mentions that regulating crypto assets in India would grant them "legitimacy" and "may cause the sector to become systemic."
The document also underlines that though an outright ban on crypto can tackle the "alarming"risks it poses, the move would not succeed in controlling peer-to-peer (P2P) transfers or trades on decentralized trading exchanges.
More News:
-
Crypto analyst has a shocking plan for India to crush 50% tariffs
-
Indian billionaire Kamath has surprising response to surge in crypto options
As per the 2025 Global Adoption Index by Chainalysis, India led the world in crypto adoption across both centralized and decentralized services.
However, Indians have crypto investments worth $4.5 billion and pose no systemic risk to financial stability, the document mentioned. Notably, the country has one of the world's highest taxes on crypto.
Regarding the accelerating growth of the U.S. dollar-pegged stablecoins, the document warns it could weaken India's digital payments system, Unified Payment Interface (UPI).
This story was originally reported by TheStreet on Sep 10, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
