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The national spokesperson for India’s ruling party has suggested that the country should explore a Bitcoin (BTC) reserve pilot and proactively work on a regulatory framework for crypto assets to lead the growing industry and strengthen its economy.

Politician Pushes For Bitcoin Reserve Pilot

On Thursday, Pradeep Bhandari, the national spokesperson of the Bharatiya Janata Party (BJP), urged the Indian government to explore a Bitcoin strategy to strengthen the country’s economy and project innovation.

In an article for India Today, Bhandari praised the US efforts to establish a Strategic Bitcoin Reserve, exploring budget-neutral options to expand its holdings without using taxpayers’ money.

He highlighted the US states’ race to pass crypto legislation and establish reserves. Notably, three states have already passed bills that allow the creation of a BTC reserve, with some, such as Texas, enabling the use of public funds to purchase and hold Bitcoin as a reserve asset.

Similarly, Arizona recently passed a bill that updated the state’s unclaimed property laws to include Bitcoin and other cryptocurrencies, technically creating Arizona’s first crypto reserve.

He also noted Bhutan’s crypto strategy, mining BTC using hydropower since 2021, offering a regional perspective. Notably, the South Asian country amassed a $1 billion Bitcoin reserve by May 2025.

BJP’s national spokesperson considers that the US shift and Bhutan’s strategy invite reflection about how BTC, thoughtfully integrated, could enhance India’s economic toolkit. “For India, observing this offers a lens to assess whether Bitcoin could diversify our reserves, complementing traditional holdings in an uncertain global economy,” the article reads.

Meanwhile, he suggested that the country, with its renewable energy capacity, could adapt Bhutan’s successful model, which shows that “digital assets can stabilise economies, a point worth considering.”

Crypto Regulatory Reform: A Must

According to Bhandari, these measures “reflect a growing recognition of Bitcoin’s potential to bolster fiscal resilience and serve as a hedge in uncertain economic conditions,” adding that these efforts aren’t a “reckless pivot,” but a “calculated step” toward embracing the legitimacy of digital assets.

Therefore, India stands at “a pivotal juncture,” having the opportunity to lead global markets with a “measured Bitcoin strategy,” like a reserve pilot, to “strengthen economic resilience and project modernity.”

Nonetheless, he explained that regulation in the country remains pivotal as India’s crypto policy needs clarity to unlock the industry’s potential. Notably, authorities tax crypto assets, but the sector remains highly unregulated.

BJP’s national spokesperson pointed out that in 2023, India chaired a crypto working group with the International Monetary Fund (IMF) to shape global standards. However, he considers it necessary to “race ahead” like the US and other jurisdictions, instead of pausing for consensus.

Clear regulation could bring both transparency and the required oversight to this emerging asset class—enabling responsible innovation while protecting a rising investor class.

He concluded that regulation is essential for “fostering institutional confidence and building a framework where Bitcoin can play a meaningful role in India’s macroeconomic strategy.”

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According to a February 25 statement, the Central Bureau of Investigation (CBI) conducted searches at 60 locations across the country, including Delhi NCR, Pune, Chandigarh, Kolhapur, Nanded, and Bengaluru.

The CBI has consolidated multiple complaints filed in various states, including Maharashtra, Karnataka, Punjab, Delhi, Jammu & Kashmir, and West Bengal, into a single case. The agency stated that its goal is to identify all those involved, recover misappropriated funds, and examine international transactions linked to the scheme.

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Additionally, authorities seized digital evidence such as emails, cloud storage data, and cryptocurrency wallets during the raids.

GainBitcoin was launched in 2015 by Amit Bhardwaj and his brother Ajay Bhardwaj under the company Variabletech Pte. Ltd. The scheme promised investors a 10% monthly return in Bitcoin
BTC


$86,838.40

Initially, investors received payouts in Bitcoin, but as the scheme started collapsing in 2017, GainBitcoin switched to MCAP, its own cryptocurrency, which had a lower value. This change left many investors unable to recover their money.

In March 2022, the Supreme Court of India ordered Ajay Bhardwaj to disclose access details for his late brother’s cryptocurrency wallets. The court emphasized that this information was key to understanding the full scale of the fraud and tracking the missing funds.

Meanwhile, Norwegian authorities recently charged four men in connection with an $87 million crypto Ponzi scheme. How did the case go? Read the full story.

Law enforcement authorities in India reportedly seized crypto assets linked to the BitConnect Ponzi scheme that defrauded hundreds of victims before collapsing in 2018.

Indian Express reports that the Enforcement Directorate (ED) seized Rs (Indian Rupee) 1,646 crore or nearly $190 million in crypto assets during its investigation of BitConnect.

The agency, which is in charge of enforcing economic laws and combating financial crimes in India, also seized Rs 1.35 million ($15,550), an SUV and digital devices during searches in the Indian state of Gujarat on February 11th and 15th.

The ED says that from November 2016 to January 2018, the people behind the scheme allegedly amassed funds from investors around the world, including participants located in India. 

BitConnect co-founder Satish Kumbhani allegedly established a network of promoters who received commissions when they enticed investors into depositing cash and Bitcoin (BTC) into the purported lending program. 

The promoters also posted fictitious information on the BitConnect web portal, claiming an average of 1% returns per day or about 3,700% per year. 

The ED says that despite BitConnect’s representation that it could generate up to 40% monthly returns using a proprietary trading bot, the perpetrators of the scheme did not use the invested funds for trading but deposited them into digital wallets that they controlled.

Authorities also say the crypto wallets carried out transactions through the dark web to make them untraceable, but by following on-chain transactions and gathering ground intelligence, the agency identified the wallets and the location of the devices that held the cryptocurrencies.

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