Reserve Bank of India says crypto rules risk legitimizing sector: Report
India is reportedly delaying comprehensive crypto regulation as its central bank warns rules could legitimize digital assets and create systemic risks.
Indian regulators are reportedly holding back from introducing comprehensive crypto rules over concerns that regulation could legitimize digital assets and create systemic risks.
According to a Wednesday Reuters report citing documents the outlet’s reporters viewed, the Reserve Bank of India (RBI) maintains the view that containing the risks posed by cryptocurrencies through regulation would be challenging.
The document reportedly states that regulating cryptocurrencies would legitimize them and “cause the sector to become systemic.” An outright ban on cryptocurrencies, the document continued, would address the alarming risks of speculative crypto assets but could not tackle peer-to-peer transfers or trades on decentralised exchanges.