Reserve Bank of India still favors crypto prohibition to curtail tax evasion: Reuters
Indian regulators maintained a hawkish stance despite the growing embrace of digital assets and technology by governments worldwide.
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Summary
- Indian authorities, led by the Reserve Bank of India, are maintaining a hawkish stance that leans toward prohibiting crypto despite growing global adoption and millions of domestic investors.
- The RBI opposes banks’ exposure to crypto and both foreign and rupee-pegged stablecoins, warning of financial contagion risks, loss of seigniorage and stress during market turmoil.
- Tax officials noted the underreporting of crypto gains and the difficulty of tracking offshore and peer-to-peer transactions, while policymakers said crypto could worsen capital outflows and India’s external deficit.
