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.
See related article: Killing it softly or regulating to innovate? India at the crypto crossroads
Fast facts
- 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.
See related article: Indian MP proposes raising crypto tax higher than 30%
