'Cryptocurrencies currently not a threat' according to the Reserve Bank of India

05 Jan, 2019
by Joeri Cant
'Cryptocurrencies currently not a threat' according to the Reserve Bank of India

In a report published by the Reserve Bank of India, it was stated that cryptocurrencies currently are no threat to the financial global stability, but given its rapid growth and adoption constant monitoring of cryptocurrencies is needed.

The RBI published its report on 'Trend and Progress of Banking in India 2017-18' on Dec. 28.

According to Quartz India, the India’s central bank wrote in its report that the Financial Stability Board (FSB), which counts over 20 countries as its members, has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets.

'Its initial assessment is that crypto-assets do not pose risks to global financial stability currently.'

Chepicap previously reported that the RBI has repeatedly cautioned users, holders and traders of cryptocurrencies about the various risks associated with these assets.

The Inspector General of crime branch recently said that the 'RBI has not given any license and authorisation to any entity and company to operate in such schemes or deal with bitcoin or any virtual currency, and such cryptocurrencies do not have any regulatory permission or protection in India'

Read more: 'Don't invest in Bitcoin!' Indian police authorities warn

Even though the Indian government has been studying virtual currencies for nearly two years now, it hasn’t come out with any specific regulations on cryptocurrencies.

The Indian cryptocurrency exchanges and traders have been demanding clarity in regulations.

'Sometimes, no regulation is not bad news. It probably means that the government of India does not see cryptocurrencies as a matter of immediate concern, or something that needs to be regulated right away. This at least means that fears of a ban are not imminent', said Nischal Shetty, CEO of WazirX, an Indian cryptocurrency exchange.

The statement made by the RBI in regards to cryptocurrencies can be seen as a good news coming from India.

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