India's Crypto Asset Regulatory Policy Continues to Evolve, Legal Status Remains Unclear

Odaily News India's approach to crypto asset regulation remains characterized by fragmented policies and enforcement measures, with no clear, systematic legal framework yet established. Although regulatory authorities have introduced tax regimes and anti-money laundering compliance requirements for virtual digital assets, the legal nature of crypto assets has not been formally defined. The market largely operates based on regulatory notices, enforcement actions, and interpretive guidance.

The report points out that the Reserve Bank of India has repeatedly expressed concerns regarding financial stability and systemic risks, while the Ministry of Finance has strengthened oversight through tax and reporting rules. However, regulators have not yet explicitly classified crypto assets as securities, commodities, or an independent asset class, leading to uncertainty in regulatory authority and responsibility.

Furthermore, regulatory overlaps, unclear details in tax enforcement, and enforcement actions against certain platforms have increased compliance complexity and impacted the long-term planning of institutional investors and innovative projects. Analysis suggests that in the absence of comprehensive legislation, India's crypto market will continue to operate in a transitional regulatory environment. (FinanceFeeds)