India’s Central Bank Reiterates Preference for Crypto Ban, Documents Show

India’s central bank has reiterated its call for a policy stance that leans toward banning cryptocurrencies, while the country’s tax department has warned that transactions conducted through offshore exchanges are difficult to trace. According to PANews, Reuters reported that documents show key Indian government agencies favor tighter restrictions on virtual digital assets, even though the government has not introduced a formal policy to ban or regulate cryptocurrencies. The report noted that since a 2018 court ruling invalidated a Reserve Bank of India (RBI) policy that effectively barred cryptocurrency activity, crypto has remained in a regulatory gray area in India. A draft bill prepared in 2021 that aimed to ban private cryptocurrencies was never submitted to parliament, and a discussion paper on the issue has been repeatedly delayed, the report said.