|
|
|
RBI seeks regulations on cryptocurrencies: Sitharaman in LS
|
|
|
|
Top Stories |
|
|
|
|
IANS | 18 Jul, 2022
Finance Minister Nirmala Sitharaman on Monday said in the Lok Sabha that
the Reserve Bank of India (RBI) has recommended framing of regulations
for cryptocurrencies. The Indian government wants an international
collaboration if such a ban has to be put into effect, said Sitharaman.
"In view of the concerns expressed by RBI on the
destabilising effect of cryptocurrencies on the monetary and fiscal
stability of a country, RBI has recommended framing of legislation on
this sector. RBI is of the view that cryptocurrencies should be
prohibited," said the Finance minister.
The minister in the Lower
House said that cryptocurrencies are by definition borderless and
require international collaboration to prevent 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.
While replying to a question, whether
RBI has issued instructions, circulars, directions, warnings, etc.,
regarding restricting the issuance, buying, selling, holding and
circulation of Cryptocurrency in India during the last ten years,
Sitharaman said, "RBI has been cautioning users, holders and traders of
Virtual Currencies (VCs) vide public notices on December 24, 2013,
February 01, 2017 and December 05, 2017 that dealing in VCs is
associated with potential economic, financial, operational, legal,
customer protection and security related risks. RBI had also issued a
circular on April 6, 2018 prohibiting its regulated entities to deal in
virtual currencies (VCs) or provide services for facilitating any person
or entity in dealing with or settling VCs."
She added that RBI,
with its circular dated May 31, 2021 has also advised its regulated
entities to continue to carry out customer due diligence processes for
transactions in VCs, in line with regulations governing standards for
Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of
Financing of Terrorism (CFT), obligations under Prevention of Money
Laundering Act (PMLA), 2002, etc., in addition to ensuring compliance
with relevant provisions under Foreign Exchange Management Act (FEMA)
for overseas remittances.
"RBI mentioned that cryptocurrencies
are not a currency because every modern currency needs to be issued by
the Central Bank / Government. Further, the value of fiat currencies is
anchored by monetary policy and their status as legal tender, however
the value of cryptocurrencies rests solely on the speculations and
expectations of high returns that are not well anchored, so it will have
a de-stabilising effect on the monetary and fiscal stability of a
country," she added.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|