Faced With Challenges From Crypto Market, Reserve Bank Of India Demands Coordination In Regulation

Every developed and fast developing countries are highly dependent on the regulatory authorities to streamline the industries within their jurisdictions.

When it comes to being strict and getting things done in the right manner, only a handful of regulatory authorities make it to the list.

In the United States, it is the Securities and Exchanges Commission (SEC) that is very strict towards cryptocurrencies. In the United Kingdom, it is the Financial Conduct Authority (FCA) that is very strict.

Then comes India which has the Reserve Bank of India (RBI) or commonly referred to as the Bank of India which is also very straightforward with cryptocurrencies.

Just like the US SEC and the UK FCA, the Indian RBI shows no flexibility or leaning towards cryptocurrencies.

To an extent, there is no other regulator that comes close to the RBI as it demanded on several occasions the complete banning of cryptocurrencies.

Although the government of India is not much against the adoption of cryptocurrencies, the RBI seems to despise them.

On several occasions, it has held many local and international crypto entities accountable for the rise in money laundering from India to the outer world.

From time to time, the RBI finds opportunities to show its aggression towards cryptocurrencies and the firms operating in a particular field.

RBI has Recently Shared its Concerns

The Reserve Bank of India has recently shared its concerns that are pertaining to cryptocurrencies. The RBI has gone on to criticize the existence of cryptocurrencies and their ecosystem.

However, it has talked about the sectors within the crypto industry in particular that it deems to be full of risk and unregulated.

The central bank has demanded that the particular segments must be banned before they can become a major problem for the country.

RBI to Raise the Matter on a Global Level

The Reserve Bank of India is a highly reputed regulatory authority in the entire world. It has even earned the right of acting as the president of the G20 group that includes the largest economies from all over the world.

It is the RBI that has the presidency rights from 2022 to 2023 for the G20 group. According to the central bank, they will be raising their concern during the next G20 group.

It wants to raise the matter on a global scale so every regulatory authority knows exactly what risks the cryptocurrency ecosystem poses on a long-term basis.

As per the officials at the regulatory authority, they will be demanding the formation of a global regulatory framework. The responsibility of the framework would be to ensure that every crypto sector is regulated.

They have to make sure that there are no entities within the cryptocurrency industry not adhering to the regulatory framework.

They need to make sure as well that the segments within the crypto sector posing great risks and threats to the economies are fully banned.

The RBI has already communicated this to the government of India through its financial stability report. The particular report was released by the RBI on December 29.

More Information from the Report

In the report, the RBI has revealed that despite the major headwinds from the global markets, they have not felt much of an impact on their internal economy.

Their country has survived both internal and external crises with flying figures, calling themselves to be highly resilient.

It seems that the RBI seems threatened only by the money laundering surge that it has recorded in the running year. The central bank has held the cryptocurrencies responsible for such activities.

If the RBI says it is going to raise the matter during the G20 summit then it is going to make it happen. Given the respect it has earned on a global scale, the central bank will be heard with seriousness.

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