The Reserve Bank of India (RBI) has again endorsed a "proscribing" policy on cryptocurrencies. According to government documents, the central bank proposes banning banks and financial institutions from owning, trading or engaging in crypto assets and private stablecoins to limit risks of "contagion" to the regulated financial system. RBI also warns against the use of Stablecoins: foreign currencies threaten sovereignty, and rupiah - may reduce revenues from fith issuance and create risks for stability.

The Indian tax authority has identified massive evasion: less than a quarter of the 645,000 traders who operated cryptocurrency in the fiscal year prior to March 2023 reported it. Offshore exchanges, private wallets and P2P deals in rupees make it difficult to track taxable income at a 30% crypto-profit rate.

There are ~39 million crypto-traders with assets of ~$2.1 billion. Cryptocurrencies have been in the "grey area" since 2018, when the court overturned the de facto ban on the RBI, and the 2021 bill never went to parliament.