The ministry’s Economic Affairs Division says crypto is hard to regulate. Many transactions happen through decentralized platforms and wallets that don’t need a middleman. If the government tightens rules on regulated crypto exchanges, some trading could simply move to unregulated systems that are even harder to track.
Officials also worry that new rules could give first-time investors false comfort. People might assume that “regulated” means “safe,” even though crypto prices can crash without warning. Across the world, rules on crypto still vary widely, and many countries have gaps in their laws too.
So rather than write fresh crypto laws, India will keep using existing rules on money laundering, taxation, consumer rights, and financial stability to watch over the sector. The government also says it will keep tracking how other countries handle crypto.
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