India's long-awaited crypto policy discussion paper has been shelved again in April 2026, marking at least the fifth public delay in under two years. The RBI continues to resist any regulatory framework that could legitimize cryptocurrencies, despite pressure from the Finance Ministry and SEBI to explore regulation. New penalty provisions under Union Budget 2026 took effect from April 1, 2026, imposing INR 200 per day penalties on reporting entities that fail to file crypto transaction statements. The ongoing impasse reflects deep disagreements between regulators, with RBI viewing crypto as a threat while SEBI and Finance Ministry favor a multi-regulator approach. Indian investors currently hold approximately $4.5 billion in digital assets according to government documents.
Meanwhile, the Delhi High Court responses from RBI, SEBI, and Ministry of Finance on regulating virtual digital assets remain pending since January 2025. The pattern of delays appears intentional, reflecting genuine regulatory discord within the Indian government structure.
