Reserve Bank of India favors crypto prohibition to curb tax evasion

The post India’s Crypto Crackdown Deepens as Central Bank Urges Ban on Bank Exposure appeared on BitcoinEthereumNews.com. India’s central bank urges crypto prohibition and bank exposure limits as tax officials flag offshore trading risks. India’s central bank has again called for a crypto policy that leans toward prohibition. Reuters reported the position after reviewing recent government documents. The Reserve Bank of India recommended barring banks from holding, trading, or gaining exposure to crypto assets. It also included privately issued stablecoins in the warning. India’s tax department raised concerns about offshore exchanges, private wallets, and peer-to-peer trades. It said these channels can make owners and taxable income harder to trace. The documents arrived while India still lacks a final national crypto policy. Tax department estimates show nearly 39 million users held about $2.1 billion in digital assets. RBI Seeks Stronger Limits on Crypto Exposure The RBI said crypto

India’s central bank urges crypto prohibition and bank exposure limits as tax officials flag offshore trading risks. India’s central bank has again called for a crypto policy that leans toward prohibition. Reuters reported the position after reviewing recent government documents. The Reserve Bank of India recommended barring banks from holding, trading, or gaining exposure to […] The post India’s Crypto Crackdown Deepens as Central Bank Urges Ban on Bank Exposure appeared first on Live Bitcoin News.

The post Crypto India: RBI Reiterates Crypto Ban Call, but No Policy Change Announced appeared on BitcoinEthereumNews.com. The post Crypto India: RBI Reiterates Crypto Ban Call, but No Policy Change Announced appeared first on Coinpedia Fintech News The Reserve Bank of India has reiterated its long-standing call for a cryptocurrency ban, according to Reuters. The RBI continues to cite risks to financial stability, monetary policy, and consumer protection. However, the central bank cannot impose a nationwide ban on its own. Any such measure would require approval from the Government of India and … Source: https://coinpedia.org/crypto-live-news/crypto-india-rbi-reiterates-crypto-ban-call-but-no-policy-change-announced/

The post India’s tax office backs RBI’s lean toward crypto prohibition appeared on BitcoinEthereumNews.com. India’s Income Tax Department has thrown its weight behind the Reserve Bank of India’s push to restrict cryptocurrencies, citing widespread underreporting and the difficulty of tracing offshore trades, according to government documents reviewed by Reuters. The documents, dated May and June, show the central bank restating a position it has held for years. The RBI wants India’s policy on digital assets to be “leaning towards prohibition.” It also wants banks and other financial institutions barred from holding, trading, or taking any exposure to crypto or privately issued stablecoins, stating that such links could spread trouble across the country’s financial system. What is new is the tax department’s public backing. Officials told the government that trades routed through overseas exchanges are hard to monitor, which raises the risk of evasion. In the financial year that ended i

The post RBI Leans Toward Crypto Ban Despite India Boasting 39 Million Traders & $2.1B Holdings appeared on BitcoinEthereumNews.com. The central bank of India continues its quest for an Indian crypto ban, increasing the pressure. The central bank of India is upping the ante on the crypto ban for India. The Reserve Bank of India (RBI) is advocating for a policy that “leans toward prohibition,” despite nearly 39 million Indian investors possessing approximately $2.1 billion in digital assets, internal government documents reveal on July 8, 2026. RBI Warns of Contagion Risks and Stablecoin Threats The RBI’s stance is more than just about the ban on cryptocurrencies in India. Both foreign-backed and rupee-pegged stablecoins have raised individual concerns for the central bank. The documents reviewed by Reuters suggest that the dollar-backed stablecoins could pose a threat to India’s monetary sovereignty. Rupee-backed tokens, the RBI cautioned, could also lead to a loss of seigniorage, or t

The post Is India moving back towards a crypto ban? appeared on BitcoinEthereumNews.com. India’s crypto policy appears to be moving backwards. This is an interestingly glum turn, especially as global markets push for better regulations. According to internal government documents, the Reserve Bank of India (RBI) is now actively for a policy that is “leaning towards (the) prohibition” of crypto. RBI’s push for a crypto ban The RBI has reportedly stated that banks and financial institutions should be barred from gaining exposure to cryptocurrencies and privately issued stablecoins. As per Reuters, the concern is that allowing regulated lenders to interact with crypto could bring chaos to the formal financial system. Another concern is that it would allegedly increase contagion risks. The RBI also believes that foreign currency-backed stablecoins are a threat to monetary sovereignty. Even the idea of rupee-backed tokens doesn’t have much support since there might be the risk of reducing th

The post India Crypto Regulation: RBI’s Prohibition Stance and Market Impact appeared on BitcoinEthereumNews.com. India’s crypto regulation debate just got sharper. The Reserve Bank of India is pushing to bar banks and financial institutions from holding, trading, or gaining any exposure to crypto assets — a stance that puts one of the world’s largest crypto markets squarely at odds with its own central bank. Key takeaways The RBI wants banks and financial institutions barred from all crypto asset exposure as part of a policy leaning toward prohibition. The central bank warns that privately issued stablecoins backed by foreign currencies threaten India’s monetary sovereignty, while rupee-backed stablecoins risk eroding government revenue and financial stability. Fewer than 25% of the roughly 645,000 individuals who conducted crypto transactions in the financial year ending March 2023 reported them on their tax returns. India’s tax department flags offshore exchanges, private wallets, a

The post India’s Central Bank Renews Push to Keep Crypto Out of the Financial System appeared on BitcoinEthereumNews.com. The Reserve Bank of India (RBI), the country’s central bank, has reiterated its support for a cryptocurrency policy that favors a prohibition-oriented approach. The RBI wants banks and financial institutions barred from any exposure to crypto assets and privately issued stablecoins.   Why India’s Central Bank Leans Toward Crypto Prohibition The RBI has warned about crypto risks repeatedly and now argues for policies “leaning towards prohibition,” according to documents reviewed this week by Reuters. It wants digital assets kept outside the regulated financial system. Officials say the aim is to limit contagion risks to lenders. The stance revives a fight the RBI lost in 2018, when a court struck down policies that had effectively banned crypto dealings. Since then, digital assets have existed in a grey zone. Indian banks are currently allowed to engage with cryptocu