RBI Cryptocurrency: Policy formulation at international level needed to curb crypto-danger, says RBI report – mssewb.org

RBI Cryptocurrency: The Reserve Bank of India has warned about crypto-dangers several times before. It even appealed to the International Monetary Fund to formulate a comprehensive policy in this regard.

This time, the RBI clearly mentioned the crypto-danger in its ‘Financial Stability Report’. In its report, the central bank said that the rise of cryptocurrencies cannot be stopped through isolated measures. There is a need to formulate an international policy in this regard. Which will be applicable everywhere in the world.

The RBI has stated in its report that the crypto-world continues to be in turmoil. But the connection of crypto with the traditional or mainstream economy is increasing. And this is where the central bank feels that there is a need to formulate a comprehensive policy at the international level. The policy that would regulate crypto and build surveillance of these transactions.

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The central bank also said that the policy will be based on the ideology of ‘same activity, same risk, same regulation’. That is, crypto transactions are essentially the same everywhere in the world. Although the number of transactions varies, the basic theory remains the same. Similarly, the risks arising from these transactions affect the economy of all countries. That is why the central bank feels that there is a need for a uniform regulatory policy in this area.

Therefore, it is proposed on behalf of the Central Bank, that the authority or regulatory body to be constituted in this regard will have appropriate powers, necessary resources and necessary means to achieve the objectives. So that surveillance, control and overall maintenance of the crypto market is possible. And the powers of the proposed regulatory body will not be confined within any specific geographical boundaries. Rather, the respective regulatory authorities can control the transactions of the crypto market within the country and at the international level as well.

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The RBI has been concerned about the crypto threat before. Apart from making common citizens aware, RBI has repeatedly said that there is a need for coordination among all countries in this regard. Because, the cryptocurrency market cannot be regulated by domestic regulation alone. Rather, if all countries do not come forward in this regard, this danger will continue to increase. RBI also revealed that in its internal report.

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