India Signals It Will Not Create Separate Crypto Rules

India has the highest crypto adoption rate in the world. Yet its finance ministry has announced that there will be no recognition of cryptocurrency in the country.

Around the globe, countries are beginning to enact regulations regarding digital assets and cryptocurrency. The European Union has done this with its Markets in Crypto-Assets (MiCA) regulations. The US has begun to introduce bills such as the GENIUS Act. Yet India, one of the world’s fastest-growing adopters, refuses to recognise cryptocurrency, and has announced it will continue to do so, instead focusing on the adoption of its own digital rupee.

Why Has the Indian Finance Ministry Rejected Separate Crypto Regulation?

As of September 19th 2026, the Bitcoin price stands at 7778818 rupees. When converted from Bitcoin to USD, this is $81,039. This is a marked improvement from the $75,3361 it sank to on Wednesday 16th.

The Indian government does not recognise cryptocurrency and implements a 30% tax on any profits made from it. The further implementation of any regulatory regime for cryptocurrency in India has recently been ruled out by the Finance Ministry. Arguing that a move such as this would lend legitimacy to the sector, it was noted that it could also create a false sense of security for investors.

Instead, the Finance Ministry told the committee that it wants to push the Central Bank Digital Currency (CBDC) or E-Rupee. It is understood this will be used as a way to deliver benefits to the country’s citizens.

In a panel led by BJP MP Bhartruhari Mahtab of the Economic Affairs Division, the committee was told that any regulatory framework came with “inherent challenges and contradictions” as crypto enabled anonymous transactions outside state-controlled systems. Their further argument was that “regulations developed for centralised intermediaries, activities increasingly migrate towards decentralised and non-custodial arrangements which are outside the purview of regulation.”

How Many People in India Use Cryptocurrency?

Cryptocurrency is big in India, despite its status. Estimates are that around 7.1% of the population own cryptocurrency, which equates to around 97.5 million people. In the Chainalysis 2025 Global Cryptocurrency Adoption Index, India ranked number one for adoption, followed by the US, Pakistan, Vietnam and Brazil.

According to the Finance Ministry, there were 36 million know your customer verified accounts across all registered bodies in the country at the last count of April 2025. These contained holdings of around 34,000 crore, according to information supplied to them by FIU-India. This put the average holdings of each user at around 5,000 crore as of May 2026.

What Is the E-Rupee?

In 2022, the Reserve Bank of India announced the first pilot for the digital E-Rupee. It is a legal tender and store of value. It correlates exactly with one digital rupee being the same value as its real-world counterpart. Kept in a designated E-Rupee app, money can be sent through the use of QR codes or phone numbers. Indian citizens can download this app from the Google Play Store.

The digital rupee can now be found in two types. One is for retail use and covers consumer and business transactions. Another is for wholesale, which caters to financial institution transactions. It is this that the government hopes to push, using it as a substitute for Bitcoin that is easier to oversee and control in the state.

Could the E-Rupee Go Global?

This did not go unnoticed by the major cryptocurrency exchanges. Binance noted that India’s e-Rupee could actually go global, in an article from February 2nd. It highlighted three ways in which this could happen: Bilateral CBDC corridors, Multilateral platforms and Interfacing with domestic rails. They then noted that “For India, success would mean tangible improvements in the efficiency of cross-border payments, alongside broadening the rupee’s international role in trade and travel. Measurable milestones could include the launch of pilot corridors with strategic partners, refinements to regulatory frameworks, and broader participation from banks and fintechs in borderless settlements.”

India did do its work on virtual digital assets in the run-up to this announcement. The government has been examining the risks involved and how they should be dealt with. A Parliamentary Standing Committee on Finance had concluded its discussions and was waiting for a government response.

For users of cryptocurrency, there are several factors that could be monitored. These include the written response that is yet to come: This was only a verbal statement, and it also applies to the committee report, which is yet to be published. Any subsequent changes to operational requirements that stem from this should also be considered.

Author Bio – Pam Brown is a journalist with exceptional analytical skills and a strong interest in modern financial systems. She specialises in translating complex topics like crypto, loans, and forex into clear, accessible content. Pam’s precise, research-driven writing has made her a trusted voice in the financial and fintech space.

Disclaimer: This article is for informational purposes only and should not be considered legal, financial, or investment advice. Readers should verify the latest cryptocurrency regulations in India and consult qualified professionals before making any crypto-related decisions.