“(The) RBI (Reserve Bank of India) is of the view that cryptocurrencies should be prohibited,” read the statement tabled by India’s Finance Minister Nirmala Sitharaman tabled in the monsoon session of the Lok Sabha. Sitharaman added that the RBI has urged the government to frame a legislative framework for crypto assets given the “destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country”. Why it matters: It is no surprise that the RBI is not a fan of crypto assets. It has put out multiple statements in the last two years indicating that it is going to ask for a ban in its recommendation to the government. The announcement is significant as the RBI is a key stakeholder and its recommendations hold sway within the corridors of the finance ministry. The RBI’s stance against crypto assets plunges the crypto sector into more uncertainty as the Union government deliberates upon a regulatory framework. Importance of global support: The statement explained that cryptocurrencies are “borderless” and the government will require international collaboration to “prevent regulatory arbitrage”. “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,” read the statement. Concerns registered by the RBI: The statement revealed that India’s central bank has registered several concerns over the adverse effect of crypto assets on the Indian economy. It wrote that cryptocurrencies cannot be recognised as currency because every modern currency…
- Why did the Delhi High Court restrict use of Amitabh Bachchan’s image and voice? November 25, 2022
- Why did an Indian exchange, CoinDCX, publish its Proof of Reserves days after releasing its R2L ratio? November 25, 2022
- DPDP Bill, 2022 Has Received Good Response From Stakeholders: MeitY’s Ashwini Vaishnaw November 25, 2022
- Twitter Blocks Tweet of CJ Werleman’s YouTube Show Discussing Police Violence Against Indian Muslims November 25, 2022
- Unique Identification Authority of India (UIDAI) says verify Aadhaar as ID proof using QR November 25, 2022
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
The Structure and Style of a Dogma Community: Conspiracy theories and organized Twitter engagement on Sushant Singh Rajput
Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement
Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?
A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'
India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...
Why ‘group privacy’ should be recognised, and how ‘non-personal’ data becomes a regulatory blindspot
There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...