The Reserve Bank of India (RBI) is delaying comprehensive crypto regulations due to concerns that regulation might inadvertently legitimize the digital asset sector and increase systemic risks. According to reports from Reuters, the RBI believes that regulating cryptocurrencies would likely make them more credible and could trigger broader financial stability issues. 30% tax on digital asset gains and registration requirements for foreign crypto exchanges are currently in place in India. However, a full ban on crypto remains an option because it addresses some of the risks of speculative investments while potentially failing to address peer-to-peer transfers or trading on decentralized exchanges. The RBI’s document suggests that while banning crypto is a way to mitigate risk, it may not solve all problems.