India Calls for Cryptocurrency Regulation
2022.12.29 14:47
India Calls for Cryptocurrency Regulation
Budrigannews.com – To call for the creation of a global regulatory framework for crypto assets, the Reserve Bank of India (RBI) has used India’s presidency of the G20 group of the world’s largest economies as a pulpit. The bank once more voiced its concerns regarding the burgeoning crypto ecosystem in its most recent financial stability report, which was published on December 29. It also suggested that specific aspects of the ecosystem might be outlawed.
Despite “strong global headwinds,” the report was generally positive about the country’s current circumstances, stating that “the Indian economy and domestic financial system remain resilient.” However, the discussion of cryptocurrencies took on a very different tone, with a familiar laundry list of problems that the cryptoverse faced in 2022 highlighted. It noticed crypto’s instability, high relationship with values and its insufficiency as a fence against expansion, as well as issues with administration, and added:
“Leverage is a constant theme running across the crypto ecosystem, making failures rapid and losses huge and sudden.”
However, crypto’s popularity is driven by rising ecosystem prices, particularly among the “younger segment of the population.” The report’s conclusion was:
“To address potential future financial stability risks and to protect consumers and investors, it is important to arrive at a common approach to crypto assets.”
“The same-risk-same-regulatory-outcome principle” was the first. Second, it suggested that crypto assets might be banned because “their real-life use cases are next to negligible.” “Different legal systems and individual rights vis-à-vis state powers” globally would make this option more difficult. The third choice, which was deemed to be too risky for mainstream finance to pursue, was to “let it implode” without taking any regulatory action. According to the report,
“Under India’s G20 presidency, one of the priorities is to develop a framework for global regulation, including the possibility of prohibition, of unbacked crypto assets, stablecoins and DeFi.”
India made crypto regulation a top priority during its presidency of the G20. India has an estimated 115 million cryptocurrency users, despite the government’s generally unfavorable position. Digital currency issued by central banks is more favorable to the RBI. Additionally, India has one of the largest Web 3 workforces in the world.
As the meetings of the first month of #G20India conclude, here’s a summary of the priorities of Finance Track: @FinMinIndia @RBI pic.twitter.com/a9IyY41tW6
— G20 India (@g20org) December 22, 2022
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