RBI seeks ban on cryptos but India needs global support to make that effective: FM Sitharaman
moneycontrol.comThe Reserve Bank of India (RBI) has recommended to the government that it should frame regulations for cryptocurrencies and prohibit them.
The government, however, seems to be of the view that a "global collaboration" is needed for any effective regulation or ban, Finance Minister Nirmala Sitharaman said in Parliament on July 18.
"In view of the concerns expressed by the RBI on the destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country, the RBI has recommended for framing of legislation on this sector. The RBI is of the view that cryptocurrencies should be prohibited," the finance minister said in a written response to a question in the Lok Sabha.
Sitharaman went on to add that given the borderless nature of cryptocurrencies, international collaboration was required to prevent any kind of 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," she said.
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