India Unlikely to Sudden Ban Cryptocurrency in 2026 Amid Constitutional Barriers

The possibility of India banning cryptocurrency suddenly in 2026 is unlikely due to constitutional barriers and enforcement challenges.

In 2020, the Supreme Court ruled that any executive action restricting crypto would need to pass a proportionality test, meaning the government must demonstrate harm severe enough to justify the restriction. A blanket ban without evidence of proportionate harm would be challenged immediately.

A legislative ban would require an Act of Parliament, which would take at least 12-24 months and involve drafting, debate, passing, and presidential assent. Currently, no crypto prohibition bill is before Parliament.

India's 107 million+ cryptocurrency users also pose a significant enforcement challenge for any potential ban. Even if a legislative ban were passed, implementation would be complex due to the scale of the ecosystem and the difficulty in confiscating or prohibiting assets held in personal, non-custodial wallets.