RBI Warns of Crypto Risks as India Faces Legal Pressure to Regulate

India’s central bank has issued a fresh warning about the potential dangers of cryptocurrency, urging caution while facing growing legal pressure for stricter regulations. The Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized that digital assets pose a significant risk not just to individual investors but also to the financial system as a whole. 2023 has seen the Supreme Court demand clear policy on crypto regulation, even drawing comparisons to hawala trading in its assessment. This urgency comes amid growing debate within the government about how to handle the cryptocurrency market.