India committee hears RBI crypto opposition

• India's Parliamentary Standing Committee on Finance heard the Reserve Bank of India's opposition to granting cryptocurrencies legal status.
• The meeting signals continued regulatory caution as India reviews its approach to virtual digital assets.
• Lawmakers are continuing to study crypto regulation while monitoring international frameworks and prioritising financial stability.

India's Parliamentary Standing Committee on Finance held its seventh meeting on virtual digital assets, where the Reserve Bank of India (RBI) said it does not support granting legal status to cryptocurrencies such as Bitcoin (CRYPTO:BTC).

The meeting formed part of the committee's ongoing study into virtual digital assets and followed earlier consultations with cryptocurrency exchanges including Binance, WazirX and ZebPay as policymakers continue evaluating regulatory options.

RBI Deputy Governor T. Rabi Sankar previously said, “Just a piece of code,” when describing cryptocurrencies and arguing they lack the fundamental characteristics of money.

The RBI reiterated concerns that cryptocurrencies lack intrinsic value and could affect financial stability and monetary sovereignty, while also warning that stablecoins may face de-pegging risks and reduce demand for the Indian rupee, and the central bank continues promoting its e-Rupee central bank digital currency as an alternative.

The parliamentary review is expected to continue as India considers potential changes to its virtual digital asset framework, while no listed company was directly affected and no share price reaction applied.

India continues to apply a 30% tax on virtual digital asset gains and a 1% tax deducted at source, while authorities have focused on strengthening Financial Intelligence Unit compliance rather than introducing comprehensive cryptocurrency legislation.

Indian policymakers are also monitoring overseas regulatory developments, including the US GENIUS Act and the European Union's Markets in Crypto-Assets framework, while maintaining that domestic priorities such as financial stability and monetary sovereignty remain central to future policy decisions.

At the time of reporting, Bitcoin price was $61,637.89.