The Reserve Bank of India, the country’s central bank, says cryptocurrencies may impact the region’s financial stability, as per a report this morning on financial publication Bloomberg.
RBI governor Shaktikanta Das said cryptocurrencies were a “major” concern, adding the bank had highlighted the points to the country’s central government. The statements marked the second instance issued by the RBI with regards to the crypto market in two weeks.
Last week, the Indian administration proposed a blanket ban on all private cryptocurrencies and called for the creation of a framework for an official digital currency issued by the RBI instead. Das confirmed that development today, stating the bank RBI was “very much in the game” in that regard.
He added the project was “receiving our full attention” and that both the technical and regulatory aspects were currently being worked on.
India's Regulator Tells Companies to Sell Bitcoin Prior to IPOs: Report
The Securities and Exchange Board of India (SEBI), the country’s top financial regulatory authority, is cracking down on high-level executives who hold Bitcoin and intend to take their companies public in the coming months, as per a report today on local news outlet Economic Times. SEBI has asked promoters of such companies to sell off any cryptocurrencies they hold before raising funds from the public, the report said, adding that investment bankers and securities lawyers involved with any ongo...
Despite the negative comments, crypto proponents are continuing to fight for the cause. Local crypto exchanges and crypto lawyers have formed a legal coalition in the past years to work with the government to help create a regulated, safe framework for the use of cryptocurrencies in the country.
Any technology can be misused
Some high-ranking officials have joined in on the movement as well. “It can be a true game-changer for India. Indeed, Bitcoin can be misused but so can Google Maps! Don’t ban it, regulate it smartly,” said Dr. Srivatsa Krishna, an official of the country’s premier civil services agency, the Indian Administrative Service, in a report published earlier this week.
Krishna questioned the government’s pessimist approach to cryptocurrencies and warned that citizens could lose out on a “wealth creation” opportunity. He further added that the government simply did not understand the potential of cryptocurrencies and was instead taking the safer route of banning the sector outright.
India Will Ban Bitcoin, Says Senior Finance Ministry Official: Report
India's draft bill to put a complete ban on cryptocurrency transactions will likely be passed, according to a senior Finance Ministry Official speaking to Bloomberg on the condition of anonymity. The official said that, when the bill gets passed, cryptocurrency holders and companies will have a transition period of between three to six months in order to wrap up their activity. As Decrypt reported recently, the country’s junior finance minister, Anurag Thakur, said that there should be more reg...
The country had previously barred all state-owned and private banks to transact with crypto exchanges in 2018, but the Supreme Court later overturned that dictum in May 2020. While this served as a brief respite, the anti-crypto narrative has swiftly returned.
