Global collaboration required to implement crypto ban: Nirmala Sitharaman
In the Monsoon Session of the Parliament, the Finance Minister shed light on the RBI’s stance on cryptocurrencies when she was asked about the same during parliamentary proceedings on Monday.
- Jul 18, 2022,
- Updated Jul 18, 2022 2:13 PM IST
In response to the advice of the Reserve Bank of India (RBI) on the need for a ban on cryptocurrencies in the country, Finance Minister Nirmala Sitharaman on Monday stated in the Parliament that any successful regulation or ban on cryptos requires “global collaboration.”
During proceedings of the Monsoon Session, Sitharaman said, “In view of the concerns expressed by the RBI on the destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country, the RBI has recommended framing of legislation on this sector. The RBI is of the view that cryptocurrencies should be prohibited.”
She added, “RBI has also advised its regulated entities to continue to carry out customer due diligence processes for transactions in VCs, in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), obligations under Prevention of Money Laundering Act (PMLA), 2002 etc. in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.”
Despite the central bank's urgent and cautionary views on crypto, Sitharaman highlighted how global cooperation is key to regulating or banning cryptocurrencies.
She 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."
The Finance Minister’s remarks arrived amid rumours that the government may introduce legislation to regulate the crypto industry during the ongoing Monsoon Session of the Parliament. However, no such legislation is scheduled for the introduction.
Investors meanwhile are keenly waiting for the government's crypto consultation paper, which is now in the works. It was reported late in May that the paper, which is expected to define the government's position on cryptocurrencies, was "almost ready" and would be out soon.
Also Read: MATIC crypto zooms 20%, Polygon Joins Disney’s 2022 Accelerator Program - BusinessToday
Also Read: Bitcoin reclaims $21,000, Polygon rallies 6% as crypto markets recover after rout - BusinessToday
In response to the advice of the Reserve Bank of India (RBI) on the need for a ban on cryptocurrencies in the country, Finance Minister Nirmala Sitharaman on Monday stated in the Parliament that any successful regulation or ban on cryptos requires “global collaboration.”
During proceedings of the Monsoon Session, Sitharaman said, “In view of the concerns expressed by the RBI on the destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country, the RBI has recommended framing of legislation on this sector. The RBI is of the view that cryptocurrencies should be prohibited.”
She added, “RBI has also advised its regulated entities to continue to carry out customer due diligence processes for transactions in VCs, in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), obligations under Prevention of Money Laundering Act (PMLA), 2002 etc. in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.”
Despite the central bank's urgent and cautionary views on crypto, Sitharaman highlighted how global cooperation is key to regulating or banning cryptocurrencies.
She 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."
The Finance Minister’s remarks arrived amid rumours that the government may introduce legislation to regulate the crypto industry during the ongoing Monsoon Session of the Parliament. However, no such legislation is scheduled for the introduction.
Investors meanwhile are keenly waiting for the government's crypto consultation paper, which is now in the works. It was reported late in May that the paper, which is expected to define the government's position on cryptocurrencies, was "almost ready" and would be out soon.
Also Read: MATIC crypto zooms 20%, Polygon Joins Disney’s 2022 Accelerator Program - BusinessToday
Also Read: Bitcoin reclaims $21,000, Polygon rallies 6% as crypto markets recover after rout - BusinessToday