The International Monetary Fund (IMF) is voicing concerns over the adoption of cryptocurrencies in India, suggesting it poses significant risks to the country’s financial stability, local media report.
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- Crypto assets pose significant risks, including to financial stability in India, IMF mission chief for India Nada Choueiri told local media.
- “Unless effective regulatory measures are implemented, the crypto-assets ecosystem could face serious consumer protection challenges such as fraud and cyberattacks,” Choueiri said.
- India’s finance ministry is reportedly consulting with the IMF, World Bank, Reserve Bank of India and the Securities and Exchange Board of India on a regulatory framework for digital assets over the next six months.
- An IMF working paper found crypto usage to be associated with a higher perception of corruption and more intensive capital controls.
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