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Crypto Without Legal Identity: What Lies Behind RBI's Opposition
India taxes and regulates cryptocurrencies through multiple statutes but has never legally defined what a cryptocurrency is, creating a foundational gap between regulatory practice and legal character. The RBI opposes legalisation while courts begin recognising crypto as property, leaving critical questions about inheritance, collateral, cross-border transfers and FEMA compliance unresolved.
The Wire takeaway
You're building cross-border payment rails on stablecoins in India without knowing whether FEMA permits what you're doing — the RBI won't say yes, Parliament won't define the asset, and courts are still writing the rules. Get legal certainty in writing from your regulators before you scale, or you're operating in a gap that closes fast.
Read the full story at lawbeat.in →
Topics: Fintech · regulatory-vacuum · crypto-legal-status · fema-compliance · cross-border-payments · stablecoin-rails