India's Central Bank Seeks to Bar Financial Institutions From Crypto Assets: 39M Investors Hold $2.1B

According to Reuters, India's Reserve Bank on Wednesday sought to bar banks and financial institutions from holding, trading, or gaining exposure to crypto assets as part of measures to keep cryptocurrencies outside the regulated financial system.

The RBI also raised concerns over privately issued stablecoins backed by foreign currencies, warning they could pose risks to monetary sovereignty. Meanwhile, India's tax department found that fewer than a quarter of the 645,000 individuals who conducted crypto transactions in the year ending March 2023 reported them on tax returns. Despite regulatory uncertainty, India remained one of the largest crypto markets by user base, with nearly 39 million crypto investors holding approximately $2.1 billion in digital assets as of end May, according to tax department estimates.