India's Central Bank Pushes Crypto Ban to Fight Tax Evasion
The Reserve Bank of India is doubling down on its push to ban crypto, citing tax evasion concerns as its primary driver.
The Reserve Bank of India isn't softening its stance on crypto — not even a little. According to a Reuters report cited by CoinDesk, the RBI continues to favor an outright prohibition on cryptocurrency, with tax evasion sitting at the top of its list of concerns. If you're trading or holding crypto in India, this matters to you right now.
India has long been a battleground for crypto regulation. The government has swung between flirtation and hostility — imposing a 30% flat tax on crypto gains and a 1% TDS on transactions back in 2022 — but the RBI has consistently pushed for something far more aggressive: a full ban. The central bank's argument is straightforward. Crypto makes it too easy to move money outside the formal financial system, undercutting tax collection and monetary oversight.
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What makes this notable is the timing. Global regulators are slowly warming to digital assets, with the U.S. shifting toward a more crypto-friendly posture under the current administration. India's central bank is swimming against that tide. The RBI's position puts it at odds with a crypto-curious population — India ranks among the world's largest crypto user bases by volume.
For traders, the risk here is real. Regulatory overhang is a known price suppressor for regional exchanges and INR-denominated pairs. A prohibition, if it ever moves from RBI preference to government policy, would force Indian retail traders offshore or underground — neither a comfortable place to operate. Watch how Indian exchange volumes react as this narrative develops.
Continue reading at CoinDesk.
