Woofun AI reports that the Reserve Bank of India (RBI) has formally advocated for a total cryptocurrency ban within a government document reviewed by Reuters. This renewed push occurs while the Indian government continues to deliberate on a definitive digital asset policy, leaving the sector in a state of regulatory limbo.

The current stance echoes historical tensions between monetary authorities and digital assets. In 2018, the central bank effectively halted crypto trading by instructing banks to cease dealings with crypto exchanges.

However, this prohibition was overturned by the Supreme Court in 2020, which ruled that the ban was arbitrary and unconstitutional, restoring access for users.

Woofun AI data shows that multiple government agencies now align with the RBI’s hardline position, viewing digital assets as threats to financial stability and consumer protection. This consensus has created a hostile environment for crypto firms, prompting some to relocate or scale back operations due to the lack of clear guidelines.

India remains one of the world’s largest markets for cryptocurrency adoption, hosting millions of retail investors. The absence of a formal policy means that Indian startups and investors continue to operate under significant uncertainty, with the final decision on regulation or prohibition still pending.