The Reserve Bank of India Must Collaborate to Properly Regulate or Ban Crypto
The Reserve Bank of India wants to ban or limit crypto but it is Effective only with Significant International Collaboration.
India's Finance Minister Nirmala Sitharaman expressed in a speech at the Lok Sabha lower house of India's bicameral Parliament that crypto is a danger to international regulatory arbitrage and that it should be banned On Monday.
Thirumavalavan Thol a Parliament Member asked the finance minister whether the Reserve Bank of India has recommended framing suitable laws to restrict the use of cryptocurrency in India and whether the government has any plan to a law restricting the use of cryptocurrency in India.
The Finance minister replied that given the concerns expressed by RBI on the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country, RBI recommended framing legislation on this sector, She expressed:
"RBI is of the view that cryptocurrencies should be prohibited."
Nirmala Sitharam said that any attempt to regulate or ban crypto should be global because cryptocurrencies are borderless. but the decentralized nature of crypto transactions and the fact that they operate outside of the traditional financial system has made the task hard for regulators. she added:
"Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards."
The Indian government has been Consulting with the International Monetary Fund (IMF) and the World Bank on crypto policies.
Reserve Bank of India Governor Shaktikanta Das expressed in the bank's annual report that cryptocurrencies are a real danger.
Furthermore, the Indian government's chief economic adviser V Anantha Nageswaran warned in June about the danger of crypto and the risks posed by its lack of regulations.
Reserve Bank of India is therefore Recommending formulating a proper law framework to limit the cryptocurrency industry. Even the finance minister thinks they should be banned.