India is adopting a cautious stance on cryptocurrencies, choosing to avoid comprehensive regulation amid fears that doing so would grant digital assets legitimacy and expose the financial system to systemic risks.
Limited Oversight, Heavy Taxation
A government document reviewed by Reuters highlighted the Reserve Bank of India’s (RBI) concerns, which underline the difficulty of mitigating crypto-related risks solely through regulation. Instead of creating a regulatory framework, authorities have leaned on punitive taxation and compliance measures to restrict activity.
Since 2022, profits from digital assets have been taxed at 30%, while a 1% tax deducted at source (TDS) has further dampened market participation. Trading volumes on domestic exchanges have declined sharply as a result.
Despite these measures, international platforms are allowed to operate if they register with the Financial Intelligence Unit (FIU) and comply with anti-money laundering checks. For instance
We współpracy z: https://cryptodaily.co.uk/2025/09/india-hesitant-to-regulate-crypto-over-legitimacy-concerns
