India’s Crypto Policy Paper Likely Shelved Amid RBI Resistance: Regulatory Uncertainty Continues

India’s long-awaited cryptocurrency policy framework appears to be on hold, as the government is likely to shelve its proposed discussion paper amid continued resistance from the Reserve Bank of India. According to reports, the Centre is increasingly inclined to rely on existing mechanisms such as taxation rules and Financial Intelligence Unit (FIU) monitoring to oversee the crypto ecosystem, rather than introducing a comprehensive regulatory framework. The RBI has consistently flagged concerns that cryptocurrencies and stablecoins pose risks to financial stability, monetary policy transmission, and capital controls, advocating a cautious approach and prioritising the development of India’s central bank digital currency instead. At the same time, divisions within policymakers persist, with some favouring regulated adoption while the central bank remains resistant to legitimising private digital assets. The development reflects India’s broader stance of “regulated ambiguity,” where crypto is neither banned nor fully regulated, but is taxed and monitored—leaving investors and businesses operating in a landscape of continued legal and policy uncertainty.