Woofun AI reports that the Reserve Bank of India has reaffirmed its stance favoring a cryptocurrency ban, while the nation's tax department cautioned that offshore exchange transactions remain difficult to trace. Although no formal ban is currently in effect, key agencies advocate for stricter controls on virtual digital assets.

Since a 2018 court ruling invalidated the RBI's previous ban, crypto operates in a regulatory gray area. A 2021 bill to prohibit private cryptocurrencies was never submitted to parliament, and related discussions have been repeatedly postponed. The government delays formal policy implementation, citing the need to balance innovation with monetary sovereignty and consumer protection.