While the Reserve Bank of India has sought to prohibit cryptocurrencies, a ban is only possible after significant international collaboration and evaluation, India’s finance minister said on Monday.
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Fast facts
- “RBI (Reserve Bank of India) is of the view that cryptocurrencies should be prohibited,” the Finance Minister Nirmala Sitharaman said in a written reply to a query in the lower house of the Parliament.
- The central bank has recommended legislating the sector, the minister said without elaborating.
- However, since cryptocurrencies are by definition borderless, India will need international collaboration to prevent regulatory arbitrage, Sitharaman said.
- “Any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” she said in her reply.
See related article: Crypto regulation has to ‘take its time’: India FM Nirmala Sitharaman