India's Evolving Crypto Stance

India is reassessing its cryptocurrency regulations due to global shifts, notably the U.S.'s pro-crypto policies, aiming for a balanced approach.

- Ruchira Talapatra

Cryptocurrencies have emerged as a transformative force in global finance, challenging traditional monetary systems and offering new avenues for digital transactions, investment, and innovation. While some nations have embraced digital assets, others have maintained a cautious approach due to concerns over volatility, financial crime, and regulatory control. India, a country with one of the highest numbers of cryptocurrency users, has had a fluctuating stance towards virtual assets. From initial skepticism and strict regulations to an ongoing reassessment of its position, India is now reviewing its cryptocurrency stance in light of shifting global attitudes, particularly following the United States' recent pro-crypto policy announcements.

This article explores India's evolving stance on cryptocurrencies, examining the influence of global regulatory changes, economic and technological considerations, and potential future scenarios for the country's digital asset landscape.

RBI'S CRYPTO BAN

India's approach to cryptocurrency has undergone significant shifts over the years. In 2018, the Reserve Bank of India (RBI) imposed a blanket ban on cryptocurrency transactions, citing concerns over financial stability, money laundering, and fraud. The move was met with resistance from industry stakeholders and investors, leading to legal battles that culminated in the Supreme Court of India overturning the ban in 2020.

This marked a crucial turning point, allowing cryptocurrency exchanges and traders to operate legally once again.

CRYPTO TAXATION