India is ready to abandon the idea of a complete ban on cryptocurrencies
Date: 2025-08-25 Author: Gabriel Deangelo Categories: IN WORLD
A recent report by the Indian Cybercrime Committee named cryptocurrencies as one of the key tools for fraud and illegal activities. The document notes the use of cryptocurrencies in cryptojacking schemes, financial pyramids, extortion, as well as for the purchase of prohibited goods on shadow Internet platforms.
According to the Ministry of Home Affairs of India, over 5.3 million complaints were registered with the police regarding cybercrimes from 2019 to 2024. In 85% of cases, it was about financial fraud involving cryptocurrencies. The total amount of damage over these years amounted to more than 31,500 crore rupees, which is equivalent to about $3.8 billion.
Despite this, the committee came to the conclusion that a complete ban on cryptocurrencies will not bring the expected result. Instead, it is proposed to establish a licensing system for crypto exchanges that will be required to operate according to FATF standards and strictly comply with AML and KYC requirements. Thus, the state intends to make the market more transparent and controllable, but at the same time not to deprive its participants of access to innovative financial instruments.
The report pays special attention to stablecoins, especially those pegged to the Indian rupee. The committee recognized their potential as a means of payment, but emphasized that regulation of this area should be under the responsibility of the Reserve Bank of India (RBI). Moreover, it is proposed to assign the status of "digital assets" to cryptocurrencies under the Foreign Exchange Management Act (FEMA).
In parallel, the RBI continues to work on its own digital rupee (CBDC) project. In June, the regulator announced the expansion of the functionality of this form of currency and an increase in the number of participants in pilot testing. This step shows that India is striving to develop public digital finance, while simultaneously forming clear rules for private cryptocurrency companies.
Thus, the Indian authorities are moving from the idea of a ban to a regulatory model that combines strict control, transparency requirements, and preserving space for market development. Such an approach can allow the country to reduce the scale of cybercrime without blocking access of citizens and businesses to new financial technologies.
India's updated strategy can become an example for other countries that are facing similar challenges: the rise of crypto crime, the need to protect users, and at the same time the desire to support innovation in the financial sector.
