Crypto News India – On July 9, 2025, India’s Finance Ministry announced that a long-awaited cryptocurrency discussion paper will be released by the end of July, aiming to provide clarity on regulating digital assets like Bitcoin, Ethereum, and altcoins. The paper, inspired by U.S. and G20 frameworks, will explore classifying cryptocurrencies separately based on their use cases, such as payments, investments, or DeFi applications.
This move responds to the Supreme Court’s call for a clear regulatory framework, amid concerns from the Reserve Bank of India (RBI) about crypto’s potential to destabilize monetary policy.
The RBI has historically criticized cryptocurrencies, with Governor Sanjay Malhotra recently reiterating risks of financial instability and dollarization, where U.S. dollar-based assets could undermine the rupee.
Despite these concerns, India’s high crypto adoption—ranking first globally twice in three years—has pushed policymakers to balance innovation with oversight.
The discussion paper will seek stakeholder input, potentially shaping a nuanced policy that distinguishes Bitcoin’s store-of-value role from altcoins’ utility in DeFi or NFTs.
The paper’s release coincides with global regulatory shifts, such as the U.S. GENIUS Act for stablecoins and the EU’s MiCA framework. Experts like Edul Patel of Mudrex argue that a tailored policy could boost India’s $130 billion remittance economy and foster blockchain innovation.
However, challenges include addressing tax evasion and illicit use, with a government committee reviewing these issues.
India’s crypto community, with over 19 million active users on exchanges like CoinDCX and WazirX, awaits clarity to reduce uncertainty. While the paper is a step forward, a final policy may take months, testing the patience of a vibrant market eager for legitimacy.
