The Reserve Bank of India has proposed a ban on banks, financial institutions, and other financial entities from engaging in transactions involving crypto assets and private stablecoins, according to Reuters citing internal documents.
The tax authority has separately warned about the risks of tax evasion through foreign exchanges, private wallets, and P2P transactions. It estimates that there are nearly 39 million crypto traders in India with assets totaling $2.1 billion. In the financial year ending March 2023, 645,000 individuals engaged in transactions with digital assets, but less than a quarter reported these in their tax declarations.