BAN ALL CRYPTO DEALERS, INDIA COMMITTEE REPORTEDLY TELLS GOVERNMENT

The future of cryptocurrency in India hangs in the balance. After actively discussing placing an all-out ban on the crypto industry, the Indian government is now reportedly reconsidering a change in tactics. More recent reports claimed that the nation had formed a new panel of experts to implement more precise regulations on cryptocurrency trading.A committee advising the Indian government has reportedly recommended a complete ban on cryptocurrency dealers, echoing concerns about financial stability and investor protection. According to a report by The Economic Times published today, the Indian government is considering forming a fresh panel to study the possibility of regulating digital currencies in India. This surprising stance by the Indian government comes after the recommendations by a committee headed by formerThis news has sent ripples through the Indian crypto community, igniting debates and anxieties about the potential impact on the burgeoning digital asset market. India s crypto industry remains hopeful that a clearer regulatory path will emerge, fostering innovation while ensuring investor protection.While the government is yet to make a final decision, this recommendation adds another layer of complexity to the ongoing saga of crypto regulation in India. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.The Reserve Bank of India (RBI) has consistently voiced its apprehension, with the RBI chief expressing concerns that cryptocurrencies could ""hamper financial stability and monetary policy"". The government is rethinking its current approach to cryptocurrency trade and investment in India, according to a report by Reuters. Reportedly, this purported change is primarily because of the global shift in the approach toward cryptocurrency specifically in the US, where Donald Trump has been making some pro-crypto announcements.This isn't the first time a ban has been considered; however, recent global shifts in crypto sentiment, particularly in the US, have prompted the government to re-evaluate its approach. Business, Economics, and Finance. GameStop Moderna Pfizer Johnson Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. CryptoIs India heading toward a China-style ban, or will a more nuanced regulatory framework emerge? A committee advising the Indian government has reportedly recommended a full ban on so-called cryptocurrency dealers. India is reportedly considering Chinese-style exchange ban for Bitcoin and cryptocurrency according to local media reports. A brief article in today s Economic Times names an unknown government committee as having advised lawmakers to close merchants andThis article delves into the details of the reported recommendation, the reasons behind it, and what it means for the future of crypto in India.

The Recommendation for a Complete Ban on Crypto Dealers

According to various reports, an unnamed government committee has advised lawmakers to prohibit all cryptocurrency dealers operating within India. India could be having a change of heart moment in crypto, a report says the Indian government considering crypto regulations instead of a ban. The central government may form a fresh panel to study the possibility of regulating cryptocurrency in India, Economic Times reported.This recommendation goes beyond simply regulating crypto exchanges; it suggests a complete shutdown of merchants and other entities involved in the buying, selling, and trading of cryptocurrencies like Bitcoin and other altcoins.The rationale behind this drastic measure seemingly stems from the committee's skepticism towards cryptocurrencies, with some reports likening them to Ponzi schemes.

What Does a Complete Ban Entail?

A complete ban, if implemented, would have far-reaching consequences.It would likely involve:

• Prohibiting crypto exchanges: Platforms facilitating the trading of cryptocurrencies would be forced to cease operations in India.
• Banning crypto mining: The process of creating new cryptocurrencies would be outlawed.
• Outlawing holding and disposing of crypto: Individuals and entities holding cryptocurrencies could be required to liquidate their holdings.
• Restricting crypto-related transactions: Any transaction involving cryptocurrencies could be deemed illegal.

This would effectively shut down the entire cryptocurrency ecosystem in India, potentially impacting millions of investors and businesses involved in the sector.

Reasons Behind the Proposed Crypto Ban

The recommendation for a complete ban is rooted in several concerns and perceived risks associated with cryptocurrencies.

Concerns about Financial Stability

The RBI has consistently expressed concerns that cryptocurrencies could destabilize the financial system. Reports say the committee has likened cryptocurrency to ponzi schemes and had also recommended that mining, holding, and disposing of virtual currencies should be made illegal, besidesThe unregulated nature of crypto markets, coupled with their volatility, poses risks to investor protection and financial stability.The lack of a central authority to oversee crypto transactions also raises concerns about money laundering and other illicit activities.

Comparison to Ponzi Schemes

Some members of the government committee reportedly view cryptocurrencies as similar to Ponzi schemes, where early investors are paid with funds from new investors.This perception likely stems from the speculative nature of crypto markets and the potential for price manipulation.

Global Regulatory Landscape

Despite the initial apprehension, the global regulatory landscape is shifting. Ban All Crypto Dealers, India Committee Reportedly Tells Government Hesham Reyman, CEO of Indian exchange Bitxoxo, told the publication the government should focus on curbing sales of cryptocurrency involving cash instead of seeking a ban.The United States, for example, has seen increasing interest and acceptance of cryptocurrencies, with figures like Donald Trump making pro-crypto announcements. Breaking news, live coverage, investigations, analysis, video, photos and opinions from The Washington Post. Subscribe for the latest on U.S. and international newsThis global trend may be influencing the Indian government to reconsider its stance, although the proposed ban suggests a more conservative approach.

India's Crypto Journey: A Rollercoaster Ride

India's relationship with cryptocurrency has been anything but smooth. cryptocurrency in india crypto ban india crypto law cryptocurrencies government winter session ban crypto bill Prime Exclusives Investment Ideas Stock Report Plus ePaper Wealth Edition Market share at 0.1%, Trump wants to make US shipbuilding great again.Over the years, the government has oscillated between considering a complete ban and exploring regulatory frameworks.

The 2025 Crypto Tax Regime

In 2025, the government introduced a flat 30% tax on gains arising from cryptocurrencies, signaling a move towards recognizing and regulating the asset class. A committee advising the Indian government has reportedly recommended a full ban on so-called cryptocurrency dealers. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.This was followed by a 1% Tax Deducted at Source (TDS) on transactions exceeding certain thresholds.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2025

Also in 2025, the government introduced the Cryptocurrency and Regulation of Official Digital Currency Bill, aiming to ban private cryptocurrencies and establish a framework for a Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI).This bill has yet to be enacted, leaving the regulatory environment uncertain.

Previous Attempts at Banning Crypto

Before the 2025 tax regime, there were active discussions about imposing an all-out ban on the crypto industry.However, recognizing the potential benefits and the growing global interest in cryptocurrencies, the government has since explored alternative approaches.

The Potential Impact of a Crypto Ban on India

A complete ban on cryptocurrency dealers could have significant consequences for the Indian economy and its citizens.

Impact on Investors

Millions of Indians have invested in cryptocurrencies. 7.3M subscribers in the CryptoCurrency community. The leading community for cryptocurrency news, discussion, and analysis.A ban could lead to significant financial losses for these investors, as they may be forced to liquidate their holdings at unfavorable prices.

Impact on the Crypto Industry

A ban would effectively wipe out the burgeoning crypto industry in India, stifling innovation and job creation. Article:Crypto exchanges, blockchain startups, and other crypto-related businesses would be forced to shut down or relocate to more crypto-friendly jurisdictions.

Impact on Innovation and Web3 Development

India has the potential to become a global leader in Web3 technology.A ban on cryptocurrencies could hinder the development of Web3 applications and services in India, potentially putting the country at a disadvantage in the global digital economy. A committee of the government is looking after this. Of course, as you are aware, we are concerned about crypto because that can hamper financial stability and monetary policy, MalhotraSumit Gupta, CEO of CoinDCX, has emphasized that Web3 could contribute $1.1 trillion to India's GDP by 2025.

Alternative Approaches to Crypto Regulation

While a complete ban is one option, there are alternative approaches to regulating cryptocurrencies that could strike a balance between fostering innovation and mitigating risks.

Comprehensive Regulatory Framework

The government could develop a comprehensive regulatory framework for cryptocurrencies, covering areas such as licensing, investor protection, and anti-money laundering.This framework could provide clarity and certainty for crypto businesses and investors, fostering a more stable and sustainable crypto ecosystem.

Central Bank Digital Currency (CBDC)

The introduction of a Central Bank Digital Currency (CBDC) could provide a regulated alternative to private cryptocurrencies. Seg n los informes, la India est considerando prohibir el intercambio de bitcoins y criptomonedas al estilo chino. Un breve art culo en el Economic Times de hoy nombra a un comit gubernamental desconocido por haber aconsejado a los legisladores a cerrar comerciantes y otros distribuidores activos en Bitcoin y monedas alternativas.A CBDC could offer the benefits of digital currencies while mitigating the risks associated with unregulated crypto assets.

Focus on Investor Education

The government could focus on educating investors about the risks and opportunities associated with cryptocurrencies. In absence of any regulation, cryptocurrency is not yet illegal in India. The discussion paper will give the stakeholders an opportunity to give their views before India decides on its policy stance on cryptocurrencies. In 2025, the government announced a flat 30 per cent tax on gains arising from cryptocurrencies.This could help investors make informed decisions and avoid scams and fraudulent schemes.

The Current State of Crypto Regulation in India

As of now, cryptocurrency is not yet illegal in India in the absence of any specific regulation.However, the regulatory environment remains uncertain, with the government still weighing its options.

The Role of the Discussion Paper

The government is expected to release a discussion paper on cryptocurrencies, which will provide stakeholders with an opportunity to share their views before India decides on its final policy stance. A governmental committee in India has reportedly suggested that cryptocurrencies be legalized in the country, English-language local media TheNewIndianExpress (TNIE) reported on Dec. 26This discussion paper is a crucial step in the regulatory process.

The Ongoing Debate

The debate over cryptocurrency regulation in India continues to rage on.While some advocate for a complete ban, others argue for a more nuanced approach that balances innovation and risk mitigation.The final decision will have a profound impact on the future of crypto in India.

Comparing India's Stance to Other Countries

India's approach to cryptocurrency regulation is not unique.Many countries around the world are grappling with the challenges of regulating this emerging asset class.Let's examine how India's stance compares to those of other nations.

China's Strict Ban

China has taken a particularly strict stance on cryptocurrencies, imposing a comprehensive ban on all crypto-related activities. Despite these views, a final decision on whether to completely ban private cryptocurrencies in India is pending further consultations. Indian officials, however, are clear that the government has the legal framework to impose stricter regulations or even an outright ban. In this regard, they cite the G20 s recently adopted guidelines.This includes crypto trading, mining, and ICOs (Initial Coin Offerings). In an effort to regulate the crypto market, the Indian government introduced a taxation regime in 2025, imposing a 30% tax on gains from the transfer of virtual digital assets (VDAs) and a 1% Tax Deducted at Source (TDS) on transactions exceeding certain thresholds.India's reported consideration of a China-style exchange ban indicates a similar level of concern about the potential risks of cryptocurrencies.

The United States' Evolving Approach

The United States has adopted a more nuanced approach to crypto regulation. We re Concerned About Crypto, Says RBI Chief. Speaking after the central bank s monetary policy briefing on Friday, Malhotra was asked about where things stand with cryptocurrency in India. There is no new development as far as crypto is concerned. A committee of the government is looking after this, he said.While there are no outright bans, regulatory agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are actively working to establish regulatory frameworks for cryptocurrencies.This evolving approach reflects a recognition of the potential benefits of cryptocurrencies while also addressing the need for investor protection and financial stability.

Europe's MiCA Regulation

The European Union has introduced the Markets in Crypto-Assets (MiCA) regulation, a comprehensive framework for regulating crypto assets and service providers. Find latest news from every corner of the globe at Reuters.com, your online source for breaking international news coverage.MiCA aims to provide legal certainty and promote innovation in the crypto sector while also protecting investors and maintaining financial stability.

Actionable Advice for Crypto Investors in India

Given the uncertainty surrounding crypto regulation in India, here's some actionable advice for crypto investors:

• Stay informed: Keep up-to-date with the latest news and developments regarding crypto regulation in India.
• Diversify your investments: Don't put all your eggs in one basket.Diversify your investments across different asset classes to mitigate risk.
• Be cautious: Be wary of scams and fraudulent schemes. There was also a meeting of the Empowered Technology Group. The Committee of Secretaries chaired by the Cabinet Secretary has also given its report. The government will soon bring a bill on crypto currencies as existing laws are inadequate to deal with issues concerning them, Minister of State For Finance Anurag Thakur told Rajya Sabha on Tuesday.Only invest in cryptocurrencies that you understand and have thoroughly researched.
• Consider using a hardware wallet: Store your cryptocurrencies in a hardware wallet for added security.
• Consult with a financial advisor: Seek professional advice from a financial advisor to help you make informed investment decisions.

Common Questions About Crypto in India

Is cryptocurrency legal in India?

As of now, cryptocurrency is not illegal in India. In 2025, the Indian government introduced the Cryptocurrency and Regulation of Official Digital Currency Bill, aiming to ban private cryptocurrencies and establish a framework for a Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI). As of now, this bill has not been enacted, leaving the regulatory environment in aHowever, the regulatory environment remains uncertain.

Will India ban cryptocurrency?

The government is considering various options, including a complete ban, a comprehensive regulatory framework, and the introduction of a Central Bank Digital Currency (CBDC). India and CryptoCurrency Ban. A Crypto currency is a medium of exchange, such as the US dollar on Indian Rupee, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds There are around 2,116 cryptocurrencies, Bitcoin like Ripple, Ethereum and Cardano with a market capitalisation of $119.46 billion.The final decision is yet to be made.

What will happen to my crypto investments if India bans crypto?

If India bans crypto, you may be required to liquidate your holdings. Binance is the world's leading cryptocurrency exchange, catering to over 270 million registered users in over 180 countries. With low fees and over 400 cryptocurrencies to trade, Binance is the preferred exchange to trade Bitcoin, Altcoins, and other virtual assets.However, the specific details will depend on the regulations implemented.

What is the future of crypto in India?

The future of crypto in India is uncertain.It will depend on the government's final decision on crypto regulation.

The Road Ahead: What to Expect

The coming months will be crucial in determining the future of cryptocurrency in India.The government's decision on crypto regulation will have a profound impact on the Indian economy, its citizens, and its position in the global digital landscape.

Monitoring Government Actions

It's essential to closely monitor the government's actions, including the release of the discussion paper and any legislative developments. Panel favours cryptocurrency ban in India. It has suggested that the government establish a standing committee to revisit the issues addressed in the report; Implementing the ban may not be easyStaying informed is key to understanding the evolving regulatory landscape and making informed decisions.

Engaging with Policymakers

Stakeholders in the crypto industry should engage with policymakers to advocate for a balanced regulatory framework that fosters innovation while mitigating risks.This can help ensure that the government's decisions are well-informed and reflect the needs of the industry and its investors.

Conclusion

The reported recommendation to ban all crypto dealers in India represents a significant turning point in the country's relationship with cryptocurrencies. India is reportedly considering Chinese-style exchange ban for Bitcoin and cryptocurrency according to local media reports.While the government's concerns about financial stability and investor protection are valid, a complete ban could stifle innovation, harm investors, and put India at a disadvantage in the global digital economy. CoinDCX CEO Sumit Gupta applauded the government s decision to revisit its crypto policy but urged for friendlier regulations and clarity: India ranks 1 in grassroots crypto adoption (Chainalysis), and Web3 could contribute $1.1 trillion to India's GDP by 2025 (NASSCOM), Gupta wrote on X, formerly Twitter. To truly lead this digitalA more nuanced approach, such as a comprehensive regulatory framework or the introduction of a Central Bank Digital Currency (CBDC), could offer a better balance between fostering innovation and mitigating risks.Ultimately, the government's decision will shape the future of crypto in India. India's crypto ban debate intensifies as the government explores adopting a Central Bank Digital Currency to mitigate financial risks. BTC $104,371.37 2.28% ETH $2,475.92 1.85%Key takeaways include:

• A government committee has reportedly recommended a complete ban on crypto dealers in India.
• The RBI has expressed concerns about the potential risks of cryptocurrencies to financial stability.
• The government is considering various options, including a complete ban, a comprehensive regulatory framework, and a CBDC.
• The final decision will have a profound impact on the Indian economy and its citizens.

The Indian crypto community and investors now face a period of uncertainty.As the government deliberates, remaining informed and prepared is paramount.Whether India ultimately chooses to embrace, regulate, or restrict cryptocurrencies, the decision will have lasting implications for the nation's digital future.