India's cryptocurrency regulatory policy continues to evolve, and its legal status remains unclear.

India's regulation of crypto assets remains fragmented, relying primarily on scattered policies and enforcement measures, lacking a clear and systematic legal framework. While regulators have introduced tax systems and anti-money laundering compliance requirements for virtual digital assets, the legal status of crypto assets remains undefined, with the market relying heavily on regulatory notices, enforcement actions, and interpretative guidance. The report points out that the Reserve Bank of India has repeatedly expressed concerns about financial stability and systemic risks, while the Ministry of Finance has strengthened regulation through tax and reporting rules. However, regulators have not clearly classified crypto assets as securities, commodities, or separate asset classes, leading to uncertainty regarding regulatory responsibilities. Furthermore, overlapping regulations, unclear tax enforcement details, and enforcement actions against some platforms exacerbate compliance complexity and impact the long-term strategies of institutional investors and innovative projects. Analysts believe that in the absence of comprehensive legislation, the Indian crypto market will remain in a transitional regulatory environment. (FinanceFeeds)