India's central bank RBI says that crypto is susceptible to fraud and is direct risks for consumer protection - regulation
India's central bank RBI says that crypto is susceptible to fraud and is direct risks for consumer protection - regulation
The Indian Central Bank, the Reserve Bank of India (RBI), has warned of several risks that represent cryptocurrencies for the country's financial stability. "They are also susceptible to fraud and extreme price volatility," claims APEX-Bank and emphasizes that "cryptocurrencies are direct risks for customer protection and combating money laundering (AML)/combating terrorism financing (CFT)."
evaluation of the cryptocurrency by the RBI
The Indian Central Bank, the Reserve Bank of India (RBI), published its six -month Financial Stability Report (FSR) last week. The 144-page document contains a section of "private cryptocurrency risks". The term “private” refers to all cryptocurrencies that are not issued by the RBI, including Bitcoin and ether.
The central bank wrote:
The global spread of private cryptocurrencies has sensitized supervisory authorities and governments for the associated risks.
"Private cryptocurrencies represent direct risks for customer protection and combating money laundering (AML) / fighting terrorism financing (CFT)," emphasized the RBI.
In addition, the central bank found: "Because of its highly speculative character, they are also susceptible to fraud and extreme price volatility. Long -term concerns relate to capital flow management, financial and macroeconomic stability, monetary policy transmission and currency substitution."The report also refers to the results of the Financial Action Task Force (FATF), which says that “the ecosystem for virtual assets for anonymity amplifies cryptocurrencies (AECs), blender and tumblers, decentralized platforms, data protection walls and other things have experienced types of products and services that have a reduced manner Enable or allow transparency and increased veiling of financial flows. " The RBI emphasized:
There are still new illegal financing types, including the increasing use of virtual-to-virtual-layering schemes that try to continue in comparatively simple, cheap and anonymous manner.
The RBI found that the market capitalization of the 100 most important cryptocurrencies has reached $ 2.8 trillion and warned: "In the emerging countries" [Emerging Market Economies], the free access to crypto-assets for residents can undermine its capital regulatory framework. "
The report also deals with the decentralized finance (Defi), which was "recently classified by the Bank for International Payment Compensation (BIZ) as a risk of a concentration of power," emphasized the Indian Central Bank and added:
The quick growth of decentralized financing (Defi) is mainly geared towards speculation and investments and arbitrage in crypto-assets and not for the real economy.
The RBI added that the restriction of the AML and Know-YOUR-CUSTOMER (KYC) provisions "together with the transaction anonymity of def Illegal activities and market manipulation and raises concerns about financial stability".
The Indian central bank has repeatedly explained that it has large and Serious concern about cryptocurrency. In its most recent meeting of the central board, the RBI asked the government, completely forbid Cryptocurrency that says that a partial ban does not work.
In the meantime, the Indian government has delayed the introduction of a cryptocurrency law. A bill should be treated in the winter session of the parliament, but it was not taken up. The government is now supposedly overwork.What do you think of the warning of the Indian central bank of cryptocurrencies? Let us know in the comment area below.
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