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Regulations
The Reserve Bank of India (RBI) has published a report indicating that cryptocurrencies are not currently a threat. However, according to the central bank, with rapid growth and the adoption of cryptocurrencies, this assessment could change, adding that constant monitoring of cryptocurrencies is necessary.
Read also: The Indian Supreme Court moves the cryptographic hearing, the community asks for positive regulations
No threats currently
<img class = "size-medium wp-image-270304 alignright” title=”The Indian Central Bank report states that Cryptocurrencies is not currently a threat” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/rbi-sign-300×224.png” alt=”The Indian Central Bank report states that cryptocurrencies are not currently a threat "width =" 300 "height =" 224 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/rbi -sign-300×224 .png 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/rbi-sign-768×574.png 768w, https://news.bitcoin.com/wp-content / uploads / 2019 /01/rbi-sign-1024×765.png 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/rbi-sign-80×60.png 80w, https: // news .bitcoin.com /wp-content/uploads/2019/01/rbi-sign-160×120.png 160w, https://news.bitcoin.com/wp-content/uploads/2019/01/rbi-sign-485×360. png 485w, https: //news.bitcoin.com/wp-content/uploads/2019/01/rbi-sign-970×720.png 970w, https://news.bitcoin.com/wp-content/uploads/2019/ 01 / rbi- sign-696×520.png 696w, https://news.bitcoin.com/wp-content/uploads/2019/01/rbi-sign-1392×1040.png 1392w, https://news.bitcoin.com/ wp-content / upload / 2019/01 / rbi-sign-1068×798.png 1068w, https://news.bitcoin.com/wp-content/uploads/2019/01/r bi-sign-562×420.png 562w, https: // news. bi tcoin.com/wp-content/uploads/2019/01/rbi-sign.png 1439w "sizes =" (maximum width: 300px) 100vw, 300px”/>The RBI published its "Report on trends and progress of the banking sector in India 2017-18" on December 28th. The report cites an analysis of the Financial Stability Board (FSB), an international body that monitors and formulates recommendations on the global financial system.
Quartz India summed up Thursday, "A global financial body, which includes India, says that cryptocurrencies are not a threat." The Indian central bank wrote in its report:
The FSB has undertaken a review of the risks of financial stability posed by the rapid growth of crypto-assets. His initial assessment is that crypto-assets do not currently pose a risk to global financial stability.
The RBI, the Securities and Exchange Board of India and the Ministry of Finance are all members of the FSB, along with 23 other countries as well as international organizations such as the European Commission, the Bank for International Settlements, the International Monetary Fund and the International Monetary Fund. World Bank.
<img class = "size-medium wp-image-270307 alignright” title=”The Indian Central Bank report states that Cryptocurrencies is not currently a threat” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/coins-300×214.png” alt=”The Indian Central Bank report states that cryptocurrencies are not currently a threat "width =" 300 "height =" 214 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/coins -300×214.png 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins-768×548.png 768w, https://news.bitcoin.com/wp-content/uploads/2019 / 01 / coins -1024×730.png 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins-100×70.png 100w, https://news.bitcoin.com/wp-content / uploads / 2019 /01/coins-696×496.png 696w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins-1068×762.png 1068w, https://news.bitcoin.com / wp-content /uploads/2019/01/coins-589×420.png 589w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins.png 1078w "sizes =" (maximum width: 300px) 100vw 300px”/>The formulation of the RBI report resembles the own report of the FSB, published in October, which states that "crypto-activities do not represent a material risk for global financial stability at this time".
The latest report from the central bank resumed its annual report stating that "Although cryptocurrency can not currently pose systemic risks, its increasing popularity leading to price bubbles raises serious concerns for the protection of consumers and investors and the integrity of the market ".
RBI says that constant monitoring is needed
<img class = "size-medium wp-image-270308 alignright” title=”The Indian Central Bank report states that Cryptocurrencies is not currently a threat” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/indian-flag-300×240.png” alt=”The Indian Central Bank report states that cryptocurrencies are not currently a threat "width =" 300 "height =" 240 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/indian -flag-300×240 .png 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/indian-flag-526×420.png 526w, https://news.bitcoin.com/wp-content / uploads / 2019 /01/indian-flag.png 687w "sizes =" (maximum width: 300px) 100vw, 300px”/>The RBI reiterated in his latest report that he repeatedly warned users, holders and merchants of cryptocurrencies about the various risks associated with these activities. Furthermore, on 6 April the central bank issued a circular prohibiting regulated entities from providing services to encrypted companies. The central bank gave them three months from the date of the circular to exit relations with the cryptic companies.
A number of participants in the sector presented petitions against the ban. The Supreme Court is ready to hear the case this month, having repeatedly postponed it last year.
The RBI continued to describe in its latest report:
However, the market continues to evolve rapidly and this initial assessment could change if crypto-assets become more widely used or interconnected with the core of the regulated financial system … Cryptocurrencies require constant monitoring of general financial stability considerations, given the rapid expansion in their use.
No hurry for the Crypto regulation
<img class = "size-medium wp-image-270311 alignright” title=”The Indian Central Bank report states that Cryptocurrencies is not currently a threat” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/questions-300×266.png” alt=”The Indian Central Bank report states that cryptocurrencies are not currently a threat "width =" 300 "height =" 266 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/questions -300×266.png 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/questions-768×680.png 768w, https://news.bitcoin.com/wp-content/uploads/2019 / 01 / questions -696×617.png 696w, https://news.bitcoin.com/wp-content/uploads/2019/01/questions-474×420.png 474w, https://news.bitcoin.com/wp-content / uploads / 2019 /01/questions.png 824w "sizes =" (maximum width: 300px) 100vw, 300px”/>On the same day, December 28, the Indian Ministry of Finance would provide some clarification to Lok Sabha, the lower house of the Indian bicameral parliament, on the country's cryptocurrency regulation. Although the media reported that the draft regulatory framework would be ready last September or before the end of last year, Shri Pon Radhakrishnan, Minister of State at the Ministry of Finance, did not indicate any urgency for the regulation of criptovalute.
He wrote: "In the absence of a globally acceptable solution and the need to elaborate [a] technically feasible solution, the department is taking the matter with due caution. It is difficult to set a specific timetable to provide clear recommendations. "
Following this report, the chief executive of the Watsirirute local exchange Wazirx, Nischal Shetty, told news.Bitcoin.com, "in a way that also endangers all kinds of prohibitions in India". Has elaborated:
The next step is to see if [the] the supreme court considers this the basis to be granted [a] stay against the RBI banking restrictions as this means that the Indian government does not see cryptography as a threat or a matter of immediate concern.
Do you think the Indian government sees cryptocurrencies as a threat? Let us know in the comments section below.
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