India's approximately 39 million crypto users hold $2.1 billion in assets; central bank still urges banks to avoid exposure

Odaily Planet Daily News: India imposes a flat 30% tax on income from virtual digital assets and an additional 1% tax deducted at source on the transfer amount. About 54 crypto service providers in the country have registered with the Financial Intelligence Unit, serving 39 million verified users, who collectively hold approximately $2.1 billion in assets.

The Reserve Bank of India (RBI) has repeatedly expressed to parliament its preference for a restrictive policy towards private cryptocurrencies and stablecoins, urging banks to avoid related exposure to protect financial stability. The long-promised crypto bill remains unfinished.

Indian government agencies are also using permissioned blockchains for non-trading scenarios. AIIMS Delhi uses blockchain to manage teacher recruitment records, the Cotton Corporation of India tracks cotton bales through a blockchain identification system, and the aviation regulator DGCA is building a digital service platform linked to blockchain.