- Minister Jayant Chaudhary’s crypto assets rose by 19% to $25,500 amid policy delays.
- The government warns that regulating crypto may grant legitimacy and create systemic risks.
- Stablecoins flagged as threats to India’s UPI despite global regulatory progress.
India continues to delay full cryptocurrency regulation, even as senior ministers report an increase in personal holdings of digital assets. Disclosures revealed that Minister Jayant Chaudhary’s crypto portfolio rose by 19% to $25,500, while his spouse’s holdings increased by 18% to $26,800. These declarations highlight a policy vacuum for the assets, while $4.5 billion has been invested nationwide.
Ministers Report Growth in Crypto Holdings
Minister Chaudhary, who handles skill development and entrepreneurship, stated their asset holdings were funded by personal savings, but did not reveal the name of teh tokens that they hold. Their disclosure marks the second consecutive year that cabinet members have declared virtual digital asset ownership. According to the latest report from Chainanalysis Global Crypto Adoption Index, India is positioned in first place, indicating grassroots activity despite restricted policy frameworks.
According to a survey by Mudrex on 9,000 Indians, 93% of respondents want clear regulation for digital assets. However, the government resists formal legislation, maintaining partial oversight while imposing a 30% tax on gains and 1% TDS on every transaction.
Systemic Risk Concerns
Reuters reviewed a government document that revealed authorities fear regulation would grant legitimacy to digital assets, potentially creating systemic risks. The Reserve Bank of India (RBI) emphasized that regulating the sector effectively would be difficult, while a full ban would not stop decentralized trading or peer-to-peer transfers.
India’s approach has changed multiple times. In 2021, a draft bill for banning private digital assets was not presented, while in 2023, India made a request for a global framework instead of unilaterally regulating it, and conducted consultations under its G20 presidency.
A policy document due in 2024 was put off until after the U.S. made its position official. Currently, global exchanges may operate locally under anti-money laundering checks, but trading volumes are suppressed due to punitive taxes and banking restrictions.
Related: India Tops Global Crypto Adoption Index for the Third Year
Stablecoins Raise New Concerns
The government report also raised concerns about stablecoins, particularly those pegged to the U.S. dollar. Authorities warned their widespread use could fragment domestic payment systems and weaken the Unified Payments Interface (UPI), India’s digital payments backbone. This issue gained urgency after U.S. President Donald Trump signed the GENIUS Act in July 2025.
Industry voices stressed the vacuum created by India’s indecision. Aishwary Gupta of Polygon Labs described a departmental “ownership crisis” in stablecoin oversight, while Mudrex CEO Edul Patel said that investors “are not against rules; they’re against uncertainty.”
Meanwhile, Monica Jasuja from the Emerging Payments Association Asia called for smart regulation bridging Web2 finance and Web3 ecosystems. Despite risks, surveys show high interest among Indian investors.
Despite the risks, 84% of respondents in the Mudrex survey labeled current taxation unfair, with 66% citing the 30% tax rate as their biggest deterrent. Analysts estimate India could save $68 billion annually with stablecoin integration, but banks hesitate as the RBI’s stance remains unclear.
While investors continue seeking clarity, the asset disclosures by Chaudhary and Singh show how personal adoption is moving faster than policymaking. Their holdings shed light on the political overlap between personal financial stakes and delayed regulatory choices, indicating the nation’s ongoing tension between encouraging innovation and containing risk, as authorities weigh global trends against domestic stability and face public pressure for clear, decisive regulation.
