India to Release Crypto Policy Paper in June 2025

India is poised to release a discussion paper on cryptocurrency policy in June 2025, a development that Sumit Gupta, co-founder of CoinDCX, has described as a significant milestone for the country's crypto ecosystem. This paper will focus on policy frameworks for regulating crypto assets and is expected to seek public comments while drawing from international standards. The move comes as India adopts a cautious stance amidst rising global interest in digital currencies, with a focus on ensuring national security and financial stability.

Gupta welcomed the news, noting that the paper will address key sectoral risks and invite public feedback. He emphasized that this represents a clear shift in how India engages with the crypto industry, providing stakeholders with a platform to express their concerns and share suggestions. Gupta also highlighted that the Financial Stability Board (FSB) had launched a thematic peer review earlier this year, with a global report expected by October 2025. He urged the community to work towards making India a global Web3 hub, calling this the "decade of Indian builders."

India's approach to cryptocurrency regulation is influenced by global trends, particularly the growing acceptance of digital assets in developed countries. The upcoming paper is expected to reference frameworks from the International Monetary Fund (IMF) and the FSB, analyzing practices from various jurisdictions and inviting feedback on their applicability in India. This reflects the country's intent to learn from international examples while tailoring its own path. However, the paper does not signify an immediate regulatory rollout but rather signals the beginning of structured dialogue.

Despite the absence of a full regulatory framework, India has introduced several interim controls. A 30% tax on gains from virtual digital assets is currently in place, although this tax policy does not validate crypto tokens as legal tender. Each crypto exchange operating in India must register with the Financial Intelligence Unit (FIU) to ensure security and build user confidence in crypto trading. The Reserve Bank of India (RBI) continues to express concerns over money laundering and cyber crimes, and is developing its own Central Bank Digital Currency (CBDC) as a more secure and reliable option compared to private cryptocurrencies.

Sumit Gupta’s view on the June 2025 discussion paper is expected to open a national dialogue on how India should regulate its crypto ecosystem. The Indian government aims to balance the need for innovation with the imperatives of financial security and public interest. India’s cautious approach contrasts with the more aggressive adoption seen elsewhere, but it is rooted in the country’s complex financial landscape. By inviting feedback from all stakeholders, including the Indian crypto industry, the government hopes to arrive at a well-informed policy. With global developments and domestic voices converging, the upcoming paper could define India’s stance on crypto for years to come.