The Reserve Bank of India (RBI) has recommended to the government that it should make strict rules for cryptocurrencies and ban them. Finance Minister Nirmala Sitharaman has given this information in Parliament. He said the government believes that any effective regulation or ban requires global cooperation.
The Finance Minister, in a written reply to a question in the Lok Sabha, said that the RBI has expressed concern over the destabilizing effect of cryptocurrencies on monetary and fiscal stability. RBI has recommended to enact a law on this. RBI is of the view that cryptocurrencies should be banned. Finance Minister Nirmala Sitharaman further said that there is no limit to cryptocurrencies. Given its international nature, international cooperation is required before any law can be made. He said that an order to legislate or ban crypto can take effect only after international cooperation.
Sitharaman’s remarks come amid speculation that the government may introduce legislation to regulate the crypto sector in the monsoon session of Parliament that began today. However, no such bill has been listed for introduction. Before the bill, all eyes are on the government draft being prepared for crypto. It is believed that this will decide the government’s stand on crypto going forward. The government said in late May that the draft was almost ready. However it is still awaited. The government has not yet opened its cards on crypto. There is even confusion over their classification. In recent days, the government has called for joint global action to tackle the problems arising from the use of crypto.