Cryptocurrency is one of the most booming forms of investments which has now gathered popularity among a lot of young investors. However, Indian crypto investors may be in some hot water as a ban on cryptocurrency is being considered during India’s G20 presidency.
Union Finance Minister Nirmala Sitharaman talked about how the government is progressing towards regulation on Cryptocurrency under India’s G20 presidency, which raises a question about the ban of crypto in India altogether.
"Recognizing the risks attached to the private virtual assets, G20 nations moved a step closer to developing a coordinated and comprehensive policy approach to deal with the crypto assets by considering macroeconomic and regulatory perspectives," Nirmala Sitharaman said, as per ANI reports.
Apart from the union finance minister, Reserve Bank of India (RBI) Governor Shaktikanta Das also said that a ban or prohibition on cryptocurrency in India “should be considered” keeping in mind the risks attached to it.
As quoted by Moneycontrol, the RBI governor said, “There were opinions expressed saying that the option of a ban or prohibition should also be considered.” He further highlighted that there are many financial risks and instabilities attacked with cryptocurrency in India.
RBI Governor Shaktikanta Das further said, "There is now wide recognition and acceptance of the fact that cryptocurrencies, or crypto assets, or crypto products, or by whatever name you call it involve several major risks to financial stability, to monetary systems, to cyber security issues, and to overall financial stability and they need to be looked at."
While the crypto industry is growing and the number of investors increasing every day, there is no global policy framework for regulating crypto assets, which gives a lot of grey areas to all investors and can lead to financial instability for many.
This means that the Indian government and RBI can consider imposing a ban or prohibition on cryptocurrency in the near future, apart from imposing fresh regulations on the same.
(With ANI inputs)
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