{"id":10123,"date":"2025-06-09T17:55:59","date_gmt":"2025-06-09T12:25:59","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=10123"},"modified":"2025-06-11T18:48:23","modified_gmt":"2025-06-11T13:18:23","slug":"crypto-regulation-in-limbo-as-india-fears-dollarization-concerns","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/crypto-regulation-in-limbo-as-india-fears-dollarization-concerns\/","title":{"rendered":"Crypto Regulation in Limbo as India Fears \u2018Dollarization\u2019 Concerns"},"content":{"rendered":"<p data-start=\"122\" data-end=\"353\"><em data-start=\"140\" data-end=\"280\">India may not be in a hurry to finalise a regulatory framework for cryptocurrencies\u2026 which could lead to \u2018dollarization\u2019 of the economy,\u201d<\/em> said a senior government official .<\/p>\n<h2 data-start=\"360\" data-end=\"393\">Why India is Holding Back<\/h2>\n<ul data-start=\"395\" data-end=\"554\">\n<li data-start=\"395\" data-end=\"475\">\n<p data-start=\"397\" data-end=\"475\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Government authorities are reluctant to declare cryptocurrencies as legal tender, citing global uncertainty over regulation. They prefer to observe how other countries respond rather than act unilaterally<\/span> .<\/p>\n<\/li>\n<li data-start=\"476\" data-end=\"554\">\n<p data-start=\"478\" data-end=\"554\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Almost all cryptocurrencies are dollar-denominated and issued by foreign entities, raising concerns that widespread adoption could trigger <em data-start=\"143\" data-end=\"158\">dollarization<\/em>\u2014a shift away from the rupee, threatening India\u2019s monetary sovereignty<\/span> .<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"561\" data-end=\"600\">Central Bank Concerns Reaffirmed<\/h3>\n<ul data-start=\"602\" data-end=\"722\">\n<li data-start=\"602\" data-end=\"643\">\n<p data-start=\"604\" data-end=\"643\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">RBI briefed the Parliamentary Standing Committee in 2022, stating that crypto\u2019s dollar-linkage could replace the rupee in domestic and cross-border transactions.<\/span><\/p>\n<\/li>\n<li data-start=\"644\" data-end=\"722\">\n<p data-start=\"646\" data-end=\"722\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Officials warned cryptocurrencies could undermine RBI\u2019s control over money flow, especially if used as an alternate medium of exchange<\/span> .<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"729\" data-end=\"765\">Global Regulatory Uncertainty<\/h3>\n<ul data-start=\"767\" data-end=\"847\">\n<li data-start=\"767\" data-end=\"847\">\n<p data-start=\"769\" data-end=\"847\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">With no consensus internationally on crypto regulations or legal status, India wants to avoid a piecemeal approach. A senior official noted, <em data-start=\"145\" data-end=\"238\" data-is-last-node=\"\">\u201cUnless we know how other countries are moving forward\u2026 we can\u2019t take unilateral measures.\u201d<\/em><\/span> .<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"854\" data-end=\"896\">What This Means for Crypto in India<\/h3>\n<ul data-start=\"898\" data-end=\"1068\">\n<li data-start=\"898\" data-end=\"941\">\n<p data-start=\"900\" data-end=\"941\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">India remains tacitly cautious\u2014not banning cryptocurrencies, but refraining from granting them legal status.<\/span><\/p>\n<\/li>\n<li data-start=\"942\" data-end=\"985\">\n<p data-start=\"944\" data-end=\"985\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">The government is delaying a clear regulations framework, opting to observe how major economies evolve in their approach.<\/span><\/p>\n<\/li>\n<li data-start=\"986\" data-end=\"1068\">\n<p data-start=\"988\" data-end=\"1068\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">With the global market cap at US\u202f$3.45\u202ftrillion\u2014up 28% in a year\u2014anything may happen next <\/span>.<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1075\" data-end=\"1089\">Takeaway<\/h3>\n<ul data-start=\"1091\" data-end=\"1432\">\n<li data-start=\"1091\" data-end=\"1217\">\n<p data-start=\"1093\" data-end=\"1217\">India\u2019s stance: Wait-and-watch on crypto\u2014fears of dollarization and policy disruption are holding the government back.<\/p>\n<\/li>\n<li data-start=\"1218\" data-end=\"1328\">\n<p data-start=\"1220\" data-end=\"1328\">For now: Cryptos remain neither approved nor banned, but carry significant regulatory uncertainty.<\/p>\n<\/li>\n<li data-start=\"1329\" data-end=\"1432\">\n<p data-start=\"1331\" data-end=\"1432\">Watch this space: As other countries clarify their stance, India may reassess regulatory options.<\/p>\n<p>Know more about:<\/p>\n<p>1<a href=\"https:\/\/www.niftytrader.in\/nse-option-chain?utm_source=Menu&amp;utm_medium=Header-Dropdown&amp;utm_campaign=Click-Track\">.NSE Option Chain<\/a><br \/>\n2.<a href=\"https:\/\/www.niftytrader.in\/bse-option-chain?utm_source=Menu&amp;utm_medium=Header-Dropdown&amp;utm_campaign=Click-Track\">BSE Option Chain<\/a><br \/>\n3.<a href=\"https:\/\/www.niftytrader.in\/nse-option-chain\/nifty\">Nifty Option Chain<\/a><br \/>\n<a href=\"https:\/\/www.niftytrader.in\/nse-option-chain\/banknifty\">4.Bank Nifty Option Chain<\/a><br \/>\n5<a href=\"https:\/\/www.niftytrader.in\/nse-option-chain\/finnifty\">.FinNifty Option Chain<\/a><br \/>\n6.<a href=\"https:\/\/www.niftytrader.in\/\">Gift Nifty<\/a><br \/>\n7.<a href=\"https:\/\/www.niftytrader.in\/options-screener?utm_source=Menu&amp;utm_medium=Header-Dropdown&amp;utm_campaign=Click-Track\">Option Screener\u00a0<\/a><br \/>\n8.<a href=\"https:\/\/www.niftytrader.in\/stock-screener?utm_source=Menu&amp;utm_medium=Header-Dropdown&amp;utm_campaign=Click-Track\">Live Screener\u00a0<\/a><\/p>\n<p data-start=\"4264\" data-end=\"4556\">\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>India may not be in a hurry to finalise a regulatory framework for cryptocurrencies\u2026 which could lead to \u2018dollarization\u2019 of the economy,\u201d said a senior government official . Why India is Holding Back Government authorities are reluctant to declare cryptocurrencies as legal tender, citing global uncertainty over regulation. They prefer to observe how other countries [&hellip;]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-10123","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=10123"}],"version-history":[{"count":4,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10123\/revisions"}],"predecessor-version":[{"id":10230,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10123\/revisions\/10230"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/10124"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=10123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=10123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=10123"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=10123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}