Earlier in the day, Indian Finance Minister Nirmala Sitharamanthe Indian central bank said (RBI) wants to ban the use of cryptocurrencies in the country.
The RBI maintains its position anti crypto
His new comments as he addresses members of Congress indicate the growing uncertainty surrounding digital assets. The Indian finance minister said the Reserve bank of India was concerned “the destabilizing impact of cryptocurrencies on a country’s monetary and fiscal stability”.
Speaking of the development of legislation in this area, Sitharaman added: ” The RBI He believes cryptocurrencies should be banned.” However, he noted that introducing any legislation or deciding to ban them for regulatory purposes would require great international cooperation.
Bonus: The Paraguayan Senate has passed a bill to regulate the cryptocurrency industry.
According to the draft, India’s finance minister said: “Cryptocurrencies are by definition borderless. They require international collaboration to prevent regulatory arbitrage. Therefore, any regulatory or interdicting legislation can only be effective after significant international collaboration on the assessment of risks and benefits and on the evolution of common taxonomy and standards “.
India represses the sector crypto
Moreover soon this year, India imposed a heavy tax 30% on the profits of cryptocurrency trading. The reason for this heavy tax is to dissuade investors. Tax rules have had an impact as trading volumes have run out on cryptocurrency exchanges in recent months.
Conversely, banks have severed ties with major cryptocurrency exchanges. This significantly reduced India’s liquidity in the cryptocurrency market. The exchange of crypto Coinbase had to cease its services in India due to informal pressure from the Reserve bank of India.
Indeed, the recent turn of events has left Indian cryptocurrency investors in areas of absolute uncertainty. Therefore, it will be interesting to see how the government and RBI coordinate a balanced approach.
To discover: The governor of the Australian central bank prefers tokens issued by the private sector to CBDCs.