RBI aiming blanket ban on digital assets in India

The Economic Times insider reported about yesterday’s Central Board of Directors of Reserve Bank of India (RBI) meeting, which took an unexpected turn when RBI presented its opinions on an absolute ban on cryptocurrencies. The anti-crypto stance of RBI is nothing new which recently talked about digital fraud and CBDC launch. 

After the exclusive speculation on the potential blanket banning on cryptocurrencies, India is back to headlines. The Indian crypto community is totally unclear if this is yet another FUD like the previous one, which crashed WazirX, the biggest crypto exchange in the country.

The central authority raised concerns about crypto as a threat to macroeconomic and financial stability. It also talked about the situation of crypto exchanges and their management.

As TheCoinRise reported, during the winter session at the Parliament, the finance minister Nirmala Sitharaman cleared the clouds around the ban, saying that the industry will only be regulated in the country.

Sitharaman talked at an Infinity Forum event earlier this month about the approach Indian authorities may take to regulate virtual currencies. In light of crypto’s borderless feature, she has urged for worldwide regulatory backing. She stated that because “technology has the ability to cross borders,” simple national controls will never be sufficient if regulators throughout the world seek to centralize the decentralized sector.

Sitharaman also highlighted concerns about the “ever-evolving” nature of cryptocurrency, which makes it nearly impossible for governments to keep up with it at all times.

RBI and Finance Ministry are in the same boat

RBI also emphasized problems including anonymity of transactions and control of “intangible assets that originate overseas.” While the ban is only speculation, the striking parallels between Indian Finance Minister Nirmala Sitharaman’s views on borderless crypto laws may come as a surprise.

Not only India but Russia is also swinging between blanket ban and regulation on the crypto industry. As the crypto bill is still not finalized, it would take time to present it to Parliament.