Has India's Ministry of Finance Asked RBI and SEBI to Regulate Crypto? Fact Check Calls Claim Misleading
A claim circulating on social media suggests that India's Ministry of Finance has directed the Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI) to regulate cryptocurrencies. Our fact check reveals this claim is misleading. While discussions are ongoing regarding a framework for virtual digital assets, India does not currently recognize crypto as an asset, and no definitive directive for full regulation has been issued.
A claim stating that India's Ministry of Finance has asked the Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI) to consider regulating crypto is misleading.
Claim Circulates Online
The assertion that the Ministry of Finance has specifically asked the RBI and SEBI to regulate crypto has been circulating online. This claim implies a formal directive for the recognition and legalization of cryptocurrencies within India's financial system.
Official Stance and Discussions
According to PIB Fact Check, India does not recognize crypto as an asset, and no such directions have been passed by the Ministry of Finance. This clarification directly contradicts the viral claim. Fact Check: Is Dilip Joshi Quitting ‘Taarak Mehta Ka Ooltah Chashmah’? Truth Behind Jethalal Exit Rumours.
However, the Ministry of Finance is indeed engaged in discussions with SEBI and the Reserve Bank of India regarding a potential multi-regulator model for virtual digital assets, as reported by Kalkine India. These discussions, taking place ahead of Union Budget 2026-27, explore how various government bodies could manage existing crypto activity. Under the proposed model, SEBI might oversee exchanges and security-like tokens, the RBI could manage cross-border crypto flows, and the ministry would maintain control over policy and taxation. This indicates an exploration of managing crypto activity, not a directive for its full regulation or recognition as legal tender or an asset.
India's Current Crypto Status
India currently lacks a dedicated crypto law, even though it possesses one of the world's largest crypto markets, according to Coinpedia. While trading cryptocurrencies is legal, they are not considered legal tender.
The Reserve Bank of India maintains a stance against legalizing crypto, advocating for strict prohibition to ensure financial stability, as highlighted by NDTV Profit. Despite this, the government has not made owning or investing in digital assets illegal. Parliament has taxed crypto gains at 30% and applied a 1% tax deducted at source on transactions, but has not regulated it. The proposed Cryptocurrency Bill of 2021 was never debated, as reported by LiveLaw. The International Bar Association also confirms that cryptocurrencies in India are currently unregulated, though the RBI and Government of India have historically banned dealing in them. Fact Check: Is the Viral Photo of Lionel Messi Bathing Baby Lamine Yamal Real or AI-Generated?.
PIB Fact Check Calls Claim Misleading
Conclusion
The claim that India's Ministry of Finance has definitively asked the RBI and SEBI to regulate crypto is misleading. While discussions are ongoing regarding a framework for managing virtual digital assets, these do not constitute a directive for formal regulation or recognition of crypto as an asset or legal tender. India does not currently recognize crypto as an asset, and the RBI opposes its legalization.
Fact check
India\'s Ministry of Finance has asked the Reserve Bank of India (RBI) and Securities & Exchange Board of India (SEBI) to consider regulating crypto.
The claim is misleading. While discussions are ongoing for a multi-regulator framework for virtual digital assets, India does not recognize crypto as an asset, and no definitive directive for full regulation has been issued.
(The above story first appeared on LatestLY on Jul 15, 2026 04:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).