India’s Central Bank Wants to Ban Cryptocurrencies, Government Says

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India’s central bank believes “cryptocurrencies should be banned,” the government told Parliament on Monday, adding to the uncertainty about the future of the nascent virtual digital asset in the world’s second-largest internet market.

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Nirmala Sitharaman, India’s finance minister, said on Monday that the Reserve Bank of India expressed concern about the “destabilizing impact of cryptocurrencies on the country’s monetary and fiscal stability” and recommended “for the development of legislation in this sector.” . The RBI believes that cryptocurrencies should be banned.”

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But developing any legislation to regulate or ban cryptocurrencies will require “significant international cooperation.” she added (PDF). The Government presented its case in response to a series of questions posed by Tolkappian Thirumawalavan, a Member of Parliament, in the House of the People, known locally as the Lok Sabha.

“Cryptocurrencies, by definition, have no borders and require international cooperation to prevent regulatory arbitrage. Therefore, any regulation or prohibition legislation can only be effective after significant international cooperation in assessing the risks and benefits and the evolution of a common taxonomy and standards,” she added.

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Sitharaman’s response creates an additional challenge for the adoption of cryptocurrencies and platforms to enable innovation in the country. India move on to tax transactions and profits related to cryptocurrency trading Earlier this year, it was seen that India’s central bank had begun to tap into the fast-growing nascent technology.

But Indian banks have been sending different signals to the industry in recent months.

The Indian central bank continues to force banks to interact with cryptocurrency platforms in India, a move that has turned them into a nightmare for firms, people familiar with the matter say.

Coinbase stopped trading in India earlier this year due to “informal pressure” from the Reserve Bank of India, crypto exchange chief executive Brian Armstrong said. Local exchanges and other crypto firms optional there is a sharp decline in trading volume in recent months, in part due to local tax laws.

Leading influential tech lobby group in India abandoned the promotion of cryptocurrency, which dealt a serious blow to the local ecosystem. in the South Asian country last week. The Internet and Mobile Association of India, an 18-year-old lobbying group, has said it is dissolving the Blockchain and Crypto Assets Council, its four-year drive to support and lobby the nascent tech category due to regulatory uncertainty.

This is an evolving story. Further…


Credit: techcrunch.com /

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