RBI reiterates push for crypto 'prohibition', cites financial risks and tax evasion

RBI has reiterated its push for a prohibition approach to cryptocurrencies, citing financial stability risks and tax evasion concerns linked to offshore platforms. The income tax department flagged that fewer than one-fourth of the 645,000 individuals who conducted crypto transactions in FY23 reported them in tax filings, with around 39 million traders holding approximately $2.1 billion in digital assets by end-May. India currently taxes crypto profits at 30%, but authorities said peer-to-peer platforms, private wallets and overseas exchanges make identifying beneficial owners difficult.