India is expected to release a detailed discussion paper on crypto regulations in June 2025, marking a critical step toward shaping the country’s official stance on digital assets. The paper will reportedly be influenced by international guidelines, particularly those from the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
This anticipated move comes amid growing global momentum for crypto adoption, especially following a public endorsement of digital currencies by U.S. President Donald Trump. His pro-crypto stance is being viewed by Indian stakeholders as a catalyst for a more open global policy environment, further pressuring local authorities to modernize India’s regulatory approach.
The Indian government has reiterated that any regulatory framework will be developed through thorough consultations with stakeholders and by analyzing successful international models. Authorities aim to strike a balance between innovation and investor protection, ensuring that the digital asset economy is both dynamic and secure.
Despite the forward momentum, the Reserve Bank of India (RBI) remains cautious. The central bank continues to warn about the potential risks associated with cryptocurrencies, such as money laundering, financial instability, and capital flight. In response, the RBI is championing the development and adoption of its own central bank digital currency (CBDC), which it believes offers a safer, government-backed alternative to private crypto assets.
Legal clarity remains a top priority for industry players, who argue that the current regulatory vacuum has stifled innovation and led to capital flight. With global exchanges like Coinbase and Binance making efforts to re-enter or expand their presence in India, there is increasing urgency for clear rules.
If released on schedule, the discussion paper could serve as the foundation for future legislation and formal crypto regulations in India. It is expected to cover areas such as taxation, investor protections, risk management, compliance, and the status of DeFi platforms.
Industry leaders remain cautiously optimistic. They see this upcoming paper as a sign that the Indian government is finally prepared to take concrete steps toward legitimizing and regulating the crypto sector. With global norms evolving and pressure building at home, June may be a turning point for India’s long-awaited entry into comprehensive digital asset governance.
Source: Top Tech News
