📰 In this update:

🔹 India is reportedly preparing to release a key discussion paper on crypto regulations this June.

🔹 The draft draws guidance from IMF and FSB recommendations.

🔹 Meanwhile, the Supreme Court is pressing the government to stop delaying decisions.

🔹 India’s approach lags behind the U.S. crypto-friendly pivot under Trump and the EU’s MiCA rollout.

India appears to be making a long-awaited move in the crypto space. Reports suggest that a discussion paper on cryptocurrency regulation is scheduled for release in June, signaling a potential shift from ambiguous tax policies to more defined legal structures. After years of regulatory silence, this could be India’s most direct signal yet that it's warming up to digital assets—especially as the industry pushes toward new all-time highs (ATHs).

Global Context: Crypto Boom Meets Geopolitical Moves

The recent pro-crypto shift by U.S. President Donald Trump, combined with escalating global trade tensions, has energized digital asset markets. Bitcoin hit a fresh ATH of $111,900 on May 22 before pulling back to $105,000.

While the U.S. and EU accelerate their crypto strategies, India’s delay is becoming increasingly visible. The U.S. Senate under Trump recently passed stablecoin legislation, and the EU is already enforcing MiCA, the most comprehensive crypto law yet.

India’s Crypto Framework May Finally Arrive

The upcoming Indian policy paper is said to be largely informed by joint recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB). It may invite public commentary on how India should respond to international regulatory models and domestic industry challenges.

So far, India’s crypto landscape has remained in a legal gray zone. The 2023 budget introduced a strict 30% tax on crypto profits, effectively discouraging growth while offering no formal recognition. Since then, regulators have required exchanges to register with India’s Financial Intelligence Unit (FIU), while the Reserve Bank of India (RBI) continues to warn of threats like money laundering and terror financing—while promoting its own CBDC as a “safer alternative.”

A senior government official reportedly emphasized that decisions will be made based on national interest, not knee-jerk reactions, given the scale of the sector’s impact.

Supreme Court Pressures Government for Clarity

India’s Supreme Court has grown increasingly impatient. In recent statements, it criticized the central government’s prolonged silence on crypto regulation, warning that this legal vacuum is encouraging abuse and innovation flight. The court noted that while global powers are moving forward, India is still without a clear legal framework.

A new report from Esya Centre, a leading think tank, claims that up to 90% of Indian crypto trading has shifted offshore in response to hostile regulations. Industry leaders warn that the current tax regime is stifling innovation and driving users toward unregulated platforms.

Supreme Court justices Surya Kant and N. Kotiswar Singh recently made it clear that banning crypto is not a solution—but that proper legislation is urgently required.

Crypto Market Update: Global Volatility Returns

As of Friday morning, the global crypto market cap dropped over 3% to $3.31 trillion, while 24-hour trading volume surged to $142.3 billion. Bitcoin has remained 5% down over the past week, despite recent upward momentum.

Meanwhile, Ripple’s XRP, which has been one of the biggest gainers earlier this year, plunged 10% over the same period.

#IndiaCrypto , #CryptoNewss , #bitcoin , #BTC , #Regulation


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