Regulators Move Cautiously While India Emerges as a Global Leader in Crypto Adoption Amid Reluctance

Indian Union Minister Jayant Chaudhary has recently come into the spotlight after declaring

holdings valued at $25,500 (₹21.31 lakh), a 19% jump from the prior year. His wife, Charu Singh, reported $26,800 (₹22.42 lakh) in crypto assets, reflecting an 18% increase year-over-year. Both attributed their portfolios to personal savings, though they did not specify which tokens were included. This marks the second year in a row that a cabinet official has disclosed such assets, underscoring the persistent friction between strong grassroots demand and unresolved regulatory issues in India.

India continues to lead the 2025 Global Crypto Adoption Index by Chainalysis, signaling robust retail interest even as regulators hesitate. However, the Reserve Bank of India (RBI) has cautioned that introducing regulations may “legitimize” the industry and pose systemic threats. According to a recent Mudrex survey, 93% of participants support regulation, while 84% consider the 30% flat tax on crypto profits to be unfair when compared to the 12.5% tax rate applied to equities. Industry representatives claim this tax gap discourages investment and hinders innovation.

Documents reviewed by Reuters reveal that Indian regulators are still proceeding carefully with comprehensive crypto legislation, concerned that widespread adoption of stablecoins could jeopardize the Unified Payments Interface (UPI)—a vital payment network in the country. Despite ongoing obstacles, Indian engagement with crypto remains strong, with citizens estimated to hold $4.5 billion in digital assets. Experts believe that clear regulations could help prevent capital flight and encourage talent retention domestically. Executives from companies such as Polygon Labs are advocating for thoughtful regulations that meet global standards, including transparent tax rules and licensing requirements.

On the international front, crypto markets continue to see large capital inflows, particularly into U.S. spot

and ETFs. In June 2025, Bitcoin ETFs attracted $4.7 billion in investments over a 15-day stretch, with BlackRock’s iShares Bitcoin Trust (IBIT) leading by pulling in $3.77 billion in the past two weeks. This brought IBIT’s total assets under management to $74.89 billion, highlighting considerable institutional interest. These ETFs are playing an increasingly pivotal role in shaping BTC-USD market trends, now holding $134.11 billion in net assets, which represents 6.27% of Bitcoin’s total market capitalization.

Ethereum ETFs also experienced inflows, though not as pronounced as those for Bitcoin. During the same period, Ethereum ETFs recorded $283.4 million in inflows for the week of June 24–28, making it the seventh straight week of gains. BlackRock’s ETHA attracted $232.9 million, with Fidelity’s FETH adding $67.4 million. Smaller funds like Bitwise’s

and 21Shares’ CETH also saw increased interest. In contrast, Grayscale’s Ethereum Trust (ETHE) registered a $25.3 million outflow, standing out as the only negative movement among the Ethereum ETFs.

The surge in Bitcoin and Ethereum ETF investments points to a larger institutional movement into crypto. These financial products have attracted traditional investors, improving market liquidity and aiding more accurate price formation. Although Bitcoin has yet to surpass its record high near $110,000, the buying pressure from ETFs has exceeded new supply from miners and countered much of the selling from long-term holders. Experts say the gap between ETF inflows and stagnant spot prices could suggest a coming breakout, especially if leverage reduction and macroeconomic caution ease.

The contrast between India’s cautious regulatory stance and the global trend toward wider crypto acceptance through ETFs is striking. While Indian regulators remain wary, the country consistently ranks among the world’s leading crypto adopters. Implementing clear rules, reforming taxes, and aligning with international norms could enable India to realize the benefits of crypto while managing associated risks.