India's Central Bank Pushes Crypto Ban to Fight Tax Evasion
The Reserve Bank of India is doubling down on its call to prohibit crypto, citing tax evasion risks as its primary concern.
The Reserve Bank of India isn't softening its stance on crypto — not even a little. The central bank continues to push for an outright prohibition on digital assets, with tax evasion sitting at the top of its list of concerns, according to a Reuters report cited by CoinDesk.
This puts the RBI squarely at odds with a global trend of cautious crypto acceptance. While the U.S., EU, and even neighboring markets are building regulatory frameworks to bring crypto under the tent, India's central bank wants the door shut entirely. That's a big deal for a country with one of the world's largest retail crypto user bases.
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For traders watching emerging market crypto flows, this matters. India has repeatedly flirted with crypto regulation — banning, taxing, and debating the asset class for years. A 30% flat tax on crypto gains and a 1% TDS on transactions already hammered trading volumes domestically. A full prohibition would be the final blow to on-shore activity, likely pushing Indian retail traders further into offshore platforms or peer-to-peer markets.
The RBI's hardline position doesn't automatically become law — India's Parliament ultimately decides crypto's fate. But central bank pressure carries serious political weight, and with tax compliance a hot-button issue for the Modi government, don't sleep on the possibility that the RBI gets what it wants. Watch this space closely if you have any exposure to Indian crypto markets or exchanges with heavy Indian user bases.
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