RBI Governor Reiterates Negative Stance on Crypto
The governor of the Reserve Bank of India (RBI), Shaktikanta Das, has restated the central bank’s negative position on cryptocurrency. According to Das, the RBI’s stance on crypto remains unchanged, and he believes that venturing into the crypto market would pose significant risks. He compared it to the Tulip mania and stated that the world, especially emerging markets, cannot afford a crypto frenzy.
India’s Central Bank Sees no Benefit in Regulating Crypto
Governor Das also expressed that the RBI sees no upside in regulating the crypto industry. He referred to a synthesis paper from the International Monetary Fund (IMF) and the Financial Stability Board (FSB) and raised concerns about how to regulate cryptocurrencies when there is no universally accepted definition for them. He questioned whether they should be considered products, financial assets, or something entirely different due to their intangible nature.
Uncertainty Surrounding Crypto Regulation in India
The Indian crypto community has been advocating for regulations for quite some time. While there has been progress at the G20 summit where India agreed to bring regulations to the industry, there is still uncertainty about how the government will proceed.
In an interview with Cryptonews.com, Catax founder Gaurav Mehta discussed how India could move forward with crypto regulation. Given India’s protectionist economy, Mehta believes that regulations may differ from those in developed countries like the USA or UK. However, with over 15 million investors in India’s crypto community pushing for regulations, Mehta suggests a possible scenario where individuals can create accounts on crypto exchanges for buying and selling crypto within India.
Hot Take: RBI Governor Remains Critical of Crypto
The governor of the Reserve Bank of India, Shaktikanta Das, has once again expressed his negative stance on cryptocurrency. He believes that entering the crypto market would carry significant risks and compared it to the Tulip mania. The RBI sees no benefit in regulating the crypto industry and questions how to regulate a sector without a universally accepted definition. While India has made progress in discussing regulations at the G20 summit, there is still uncertainty about the government’s approach. The Indian crypto community is pushing for regulations, but given India’s protectionist economy, regulations may differ from those in developed countries. A possible scenario could involve separate regulations for crypto trading and ownership within India.
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