The Reserve Bank of India (RBI) is relaunching its crusade against cryptocurrencies. According to a report from CoinTelegraph, the Indian central bank has renewed its efforts to isolate the traditional banking sector from the crypto industry, once again reigniting fears of a regulatory crackdown in the world’s most populous nation.
This is not the first time the RBI has attempted to cut ties between banks and cryptocurrencies. Back in 2018, the central bank imposed a de facto banking ban, preventing financial institutions from dealing with any crypto-related companies or businesses. This banking ban was later overturned by the Indian Supreme Court in March 2020, effectively opening the door to a period of strong growth for the Indian crypto sector.
A different context
But the context has changed significantly since 2020. India is now the world’s most populous country, with over 1.4 billion inhabitants and rapidly growing crypto adoption, particularly among young urban professionals. The Indian government has already put in place a strict tax framework: a 30% tax on all crypto gains and a 1% tax deducted at source (TDS) on every single transaction.
While Bitcoin was hovering around $63,184 on this July 4, 2026, with the total crypto market capitalization approaching an estimated $2.27 trillion, India represents a strategic market that the crypto industry simply cannot afford to lose. Major Indian exchanges like CoinDCX and WazirX have already invested heavily in regulatory compliance to ensure they remain operational in the country.
A warning signal for the industry
The relaunch of this initiative by the RBI suggests that the central bank’s position on cryptocurrencies has not changed, despite the evolution of the tax framework and the rapid growth of adoption across the country. For exchanges and crypto companies operating in India, this is a clear warning signal: regulatory risk remains high here, even in a market that is rapidly expanding.
India thus joins other economies of the Global South that are hardening their stance on cryptocurrencies, while the United States and Europe advance toward more structured and comprehensive regulatory frameworks. This growing divergence between different regulatory approaches could significantly shape the global geography of crypto adoption in the years to come.
DailyCryptoNews provides information, analysis and educational content. No published content constitutes investment advice, financial recommendation or an incentive to buy or sell any digital asset.
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