Indian government tends to maintain limited regulation of cryptocurrencies to avoid systemic risks

According to Wu, the Indian government tends to not legislate comprehensive regulation of cryptocurrencies, but maintains the current limited regulatory structure. The document states that the Reserve Bank of India believes that regulation is difficult to curb related risks and may give crypto assets "legality". Furthermore, the document warns that the widespread use of stablecoins may undermine India's digital payment infrastructure, such as the Unified Payment Interface (UPI).