- RBI reaffirms cautious stance, citing financial instability risks.
- Regulatory ambiguity affects Bitcoin and Ethereum in India.
- RBI’s stance unchanged, continues past cautionary trend.
In India, the Reserve Bank of India (RBI) has reaffirmed its cautious stance on cryptocurrencies, expressing concerns over potential financial instability, as noted on June 2025 by RBI Governor Sanjay Malhotra.
The RBI’s position highlights the ongoing regulatory challenges and uncertainty in the Indian crypto market. Key players, including the RBI and Indian exchanges, continue to navigate a cautious environment.
Mainly responsible for crafting India’s monetary policies, the Reserve Bank of India has consistently expressed concerns about cryptocurrencies’ potential risk to financial stability. RBI Governor Sanjay Malhotra reiterated these reservations, emphasizing the absence of legal backing and potential misuse. He stated, “RBI has maintained a consistent stance on this issue. A govt committee is currently examining the matter. We remain concerned about the potential risks crypto poses to financial instability and monetary policy.”
The Indian market remains affected by this regulatory stance, with Bitcoin and Ethereum facing pressures. Local exchanges grapple with legal ambiguities, hindering advancements in fiat-to-crypto accessibility and limiting institutional crypto involvement.
The cautious stance reflects a sustained trend reminiscent of previous cycles, such as the 2018 crypto ban overturned in 2020. RBI’s approach keeps investor sentiments in check, preventing a rapid crypto adoption phase in India.
Potential outcomes of this policy include continued pressure on cryptocurrency trading volumes within India. The lack of new guidelines or regulatory advancements suggests another potential cycle of market stagnation and institutional hesitation, ultimately affecting India’s crypto landscape.
