4 India’s RBI crypto stance 2025 continues to raise eyebrows—and caution—across the digital asset community. With Sanjay Malhotra stepping in as the new RBI Governor, many expected a shift in direction. However, Malhotra’s first press conference confirmed that the central bank is not softening its position on cryptocurrency. This matters more than ever. As global markets evolve and India’s crypto startups grow restless, clarity from the RBI will shape the future of digital finance in the country. So where do things stand—and where are they headed? What is RBI’s Crypto Stance in 2025? The Reserve Bank of India (RBI) has maintained a long-standing cautious approach toward cryptocurrency. Since 2018, the RBI has expressed concerns about: Financial instability Monetary policy disruption Volatility and fraud risks In 2025, under Governor Sanjay Malhotra, that stance remains unchanged. During his recent public address, he clearly stated, “There are no new developments on the crypto front,” emphasizing that the bank still views digital assets as a potential threat to India’s financial stability. This means no relaxation of regulations, no new guidelines, and continued uncertainty for India’s crypto investors and exchanges. Why RBI Crypto Stance 2025 Matters 1. India’s Growing Crypto Adoption Despite regulatory ambiguity, crypto use in India is rising. Young investors, developers, and fintech startups are exploring blockchain-based applications. But the lack of clear regulations limits both domestic growth and foreign investment. 2. Impact on Institutional Participation Major global exchanges like Binance and Coinbase have tested the Indian waters but pulled back amid tax burdens and unclear rules. RBI’s persistent caution deters wider participation from global financial institutions. 3. Regulatory Panel in Progress A government-appointed panel, including RBI, SEBI, and the Finance Ministry, is working on a regulatory framework. However, RBI’s stance suggests that even if rules are drafted, implementation could still face delays or limitations. Key Updates from the RBI’s 2025 Monetary Policy Rate Cut Reflects Growth Focus Repo rate cut by 50 basis points to 5.50% Cash Reserve Ratio (CRR) reduced by 100 bps Signals focus on growth and liquidity Neutral Policy Shift Moved from “accommodative” to “neutral” stance Indicates RBI believes sufficient support has been given for growth Crypto Caution Reiterated RBI believes crypto threatens monetary stability Governor Malhotra warned that consumer protection risks remain unresolved Stance is consistent with earlier communications, despite pressure for change How India’s Crypto Ecosystem is Responding Uncertain Trading Climate With no policy clarity, traders remain cautious. Many have moved assets to international platforms or are waiting for regulatory clarity. Taxation Frustrations Crypto gains are taxed at 30%, with 1% TDS on transactions. The community argues this stifles innovation and discourages trading. CBDC Momentum: Digital Rupee Update While private cryptos face skepticism, the RBI is advancing its Central Bank Digital Currency (CBDC), the Digital Rupee. This reflects the RBI’s preference for state-backed innovation over decentralized assets. What to Watch Next Regulatory Framework Timeline Will the government release a draft soon? Will it favor innovation or stay aligned with RBI caution? Market Response How will exchanges, VASPs, and investors adjust their strategies? Global Influence U.S. and EU regulations might impact India’s next steps. Political support (or lack of it) can sway policy direction. CBDC Rollout Progress Watch RBI’s Digital Rupee pilots and use cases. Success here might influence crypto policy down the line. The message from the RBI crypto stance 2025 is clear: no change, no relaxation, and no formal regulation—yet. Sanjay Malhotra has stayed true to the central bank’s line, prioritizing financial stability over tech disruption. For now, crypto traders should proceed with caution, exchanges must remain compliant, and policymakers need to bridge the gap between innovation and control. FAQ: What is RBI’s latest stance on cryptocurrency in 2025?The RBI has reiterated that its stance on crypto remains cautious due to concerns about financial stability and policy control. Did the new RBI Governor Sanjay Malhotra bring any policy change for crypto?No, Sanjay Malhotra confirmed that there are no new developments and the RBI’s stance remains the same as before. What are the current tax rates on crypto in India?Crypto gains are taxed at 30%, with a 1% TDS on every transaction, as per the existing tax structure. Is India planning to regulate cryptocurrency soon?A government-appointed panel is working on a regulatory framework, but no official policy has been announced yet. What is the RBI’s view on stablecoins and the Digital Rupee?While RBI is skeptical of private cryptos like stablecoins, it continues to push forward with its official CBDC, the Digital Rupee.
