24/7 Cryptocurrency News

India’s Central Bank Is Keen to Ban Cryptocurrencies, Says Finance Minister

Published by
India’s Central Bank Is Keen to Ban Cryptocurrencies, Says Finance Minister

India has been doing flip-flops over the last few years over its decision to allow the use of cryptocurrencies in the country. On Monday, Indian Finance Nirmala Sitharaman said that the Indian central bank – Reserve Bank of India (RBI) – is keen to ban the use of cryptocurrencies in the country.

Her fresh comments while addressing parliament members shows the growing uncertainty surrounding digital assets. The Indian finance minister said that RBI has expressed concerns about the “destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country”.

While speaking about having legislation in this sector, Sitharaman added that “RBI is of the view that cryptocurrencies should be prohibited”. However, Sitharam said that introducing any legislation for regulatory purposes or deciding to ban them would require significant international cooperation. As per the draft, the Indian Finance Minister said:

“Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards”.

India’s Crypto Crackdown

Earlier this year, India introduced a strong 30% tax on the profits derived from crypto trading. The reason behind imposing this heavy tax was to discourage investors. The tax rules did have an impact as trading volumes went dry at crypto exchanges over the last few months.

On the other hand, banks have called off ties with major crypto exchanges. This has put a big dent in the Indian liquidity coming to the crypto market. Cryptop exchange Coinbase had to stop its services in India due to informal pressure from the RBI.

The recent turn of events has left Indian crypto investors in an absolute uncertain zone. It will be interesting to see how the government and the RBI coordinates to take a balanced approach.

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025
  • 24/7 Cryptocurrency News

Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility

Asset manager Hashdex has officially included Cardano in its Nasdaq Crypto Index U.S. ETF. This…

October 1, 2025
  • Bitcoin News

U.S. Treasury To Ease Tax Rule on Unrealized Bitcoin Gains, Aiding Saylor’s Strategy

The U.S. Treasury and IRS have released an interim guidance, which highlights plans to ease…

October 1, 2025
  • 24/7 Cryptocurrency News

Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin

Trump Family's World Liberty Financial has unveiled big real-world asset (RWA) tokenization plans on Wednesday,…

October 1, 2025
  • 24/7 Cryptocurrency News

Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms

Fintech giant Stripe has unveiled a suite of tools to enable businesses to tap into…

October 1, 2025
  • 24/7 Cryptocurrency News

Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder

Metaplanet has expanded its Bitcoin portfolio with another purchase. The Tokyo-listed firm is now the…

October 1, 2025