In official government documents, the Reserve Bank of India (RBI) restated that crypto regulation should adopt a stance 'leaning toward prohibition'. It proposed banning banks and financial institutions from holding, trading or having exposure to crypto assets and privately issued stablecoins to contain risk spillover. India’s tax authority warned that transactions on offshore exchanges and private wallets make it hard to trace beneficial owners and recover taxes, while rupee-denominated peer-to-peer trades complicate tracking taxable income. As of late May, India had around 39 million crypto traders holding digital assets worth approximately USD 2.1 billion.