India rejects comprehensive cryptocurrency regulation, fearing systemic risks

According to Reuters, Indian government documents indicate that India prefers to maintain partial oversight rather than comprehensive legislation to regulate cryptocurrencies, citing concerns that integrating digital assets into the mainstream financial system could trigger systemic risks. The document notes that regulating cryptocurrencies could confer "legitimacy," giving the industry systemic impact. Furthermore, a blanket ban on cryptocurrencies would fail to address peer-to-peer transactions and decentralized exchange activities. India currently imposes punitive taxes on cryptocurrency transactions and implements laws to curb speculative trading and illegal activities.