rbibanbanksfromcrypto

India’s Central Bank Pushes Hard For Crypto Ban Again

RBI wants total ban | Tax dept flags offshore trading | 30% tax not working ⚠️

📰 RBI’s Stance: “Leaning Towards Prohibition”
▶️ Source Internal government docs reviewed by Reuters
▶️ RBI Position Wants crypto kept outside the regulated financial system
▶️ The Ask Banks and financial institutions should be prohibited from holding, trading, or having any exposure to crypto + private stablecoins like USDT and USDC

⚠️ Why RBI Is Worried
▶️ 1. Financial Stability Concern over risks from volatile digital assets
▶️ 2. Monetary Sovereignty Foreign-pegged stablecoins could hurt rupee control
▶️ 3. Fiat Revenue Rupee-backed stablecoins could cut government income from issuing currency
▶️ 4. Stress Risk Stablecoins could worsen problems during financial stressNote: Crypto trading is not fully banned yet. India remains in a regulatory grey zone. Most big banks already avoid crypto due to RBI warnings.

🧾 Tax Department Sounds Alarm
▶️ Tracking Problem Crypto via offshore exchanges, P2P rupee trades, and private wallets is hard to monitor
▶️ Compliance Gap Of 645,000 people who traded crypto in 2023, less than 25% reported it on tax returns
▶️ Current Tax 30% tax on crypto gains exists, but officials say overseas platforms + valuation gaps make enforcement tough

⚖️ Bottom Line
RBI is doubling down: ban banks from touching crypto and stablecoins.
Tax officials are doubling down too: enforcement is leaking through offshore + self-custody.
Until India sets clear rules, exchanges and users stay stuck between high taxes and ban threats.The push for prohibition is back on the table 👀

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