Stablecoins have quickly become one of the most discussed innovations in India’s digital finance ecosystem. Pegged to fiat currencies like the US dollar, these digital tokens offer stability, making them appealing for cross-border payments and global trade. However, India’s regulatory environment remains cautious.
Under FEMA (Foreign Exchange Management Act), stablecoins are not recognized as legal currency. Any remittance, trade payment, or investment involving them falls outside India’s authorized foreign exchange channels, creating compliance risks. The Reserve Bank of India (RBI) has repeatedly warned against virtual currencies due to their unregulated nature and potential misuse in cross-border settlements.
At Sriya Enterprise, we provide expert FEMA advisory to help businesses understand the legal implications of using stablecoins in exports, imports, and remittances. We guide companies on maintaining lawful trade practices while preparing for emerging frameworks like CBDCs (Central Bank Digital Currencies).
By staying informed and compliant, Indian businesses can explore digital innovations responsibly, without risking violations or penalties under FEMA.
At Sriya Enterprise, we aim to provide clear insights on emerging trends in trade finance, foreign exchange management, and regulatory compliance. One such concerning matter is extensive use of stablecoins — a digital currency innovation rapidly gaining attention globally but…
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