The Reserve Bank of India reiterated its concerns over cryptocurrencies, clarifying its stance on digital assets just days after the regulator told banks to set aside a 2018 ban on trading. “There is no change in RBI’s position,” RBI Governor Shaktikanta Das told reporters at an online press conference after the monetary policy statement. “We have major concerns around cryptocurrency, which we have conveyed to the government,” the governor noted.
RBI expresses concerns over cryptocurrencies.
The Reserve Bank of India has expressed concern about cryptocurrencies on a number of occasions, citing money laundering and terrorism financing issues. The financial regulator banned banks and other regulated entities from supporting crypto transactions about three years ago, but the Supreme Court overruled that ban last year. RBI governor said the RBI couldn’t advise investors about their decisions and that each one needs to take a “very careful call” and do their own diligence. India is yet to pass a legislative on cryptocurrencies.
Regulators continue to seek strict regulations around crypto.
Earlier, RBI had put out a circular prohibiting banks from providing services to crypto users and crypto companies. Despite this ban being overruled by the Supreme Court of India earlier last year, banks continue to cite RBI’s circular to ban users from engaging with crypto. Now the RBI has said that banks can not cite that circular. Financial regulators across countries are working to regulate cryptocurrencies actively following the volatile rally of the leading cryptocurrency bitcoin this year. Earlier, Federal Reserve Chief Gary Gensler had asserted the need to form a global policy for regulating cryptocurrencies and to protect crypto investors.