India’s Central Bank Says Crypto Policy Should Lean Toward Prohibition

According to Reuters, India’s central bank has reiterated that the country’s approach to cryptocurrencies may need to remain tilted toward stricter curbs, recommending that banks and other financial institutions be barred from owning, buying and selling, or otherwise taking on exposure to crypto assets and privately issued stablecoins to reduce potential risks to the financial system.

The recommendation comes after India's tax authorities warned that cryptocurrency trading conducted through overseas platforms and self-custodied wallets can obscure the identities of the people ultimately controlling the assets, making it more difficult to recover unpaid taxes. The authorities also said peer-to-peer deals settled in rupees make taxable income harder to track, creating additional enforcement challenges.

Source: Reuters