Crypto India: RBI reportedly seeks a blanket ban on Cryptocurrencies

The Indian crypto community is concerned since the exclusive speculation about a potential blanket ban on crypto flooded the market. However, it is still unclear whether this is yet another FUD or if the government may actually consider a China-like move for crypto in India.

According to Economic Times insider reports, yesterday’s meeting of the Central Board of Directors of Reserve Bank of India (RBI) took a bitter turn when RBI presented with suggestions for an absolute ban on cryptocurrencies. RBI’s anti-crypto stance was supported by its long standing argument, about crypto as a threat to macroeconomic and financial stability, along with exchange management.

RBI and Indian Finance Minister’s similar concern regarding Crypto

The central bank also emphasised issues like – anonymity of transactions and regulation of “intangible assets that originate overseas”. While these continue to be speculations, yet the uncanny similarities between the Indian Finance Minister, Nirmala Sitharaman’s take on “borderless crypto regulations” may come as a shock.

Earlier this month, Sitharaman spoke at an event organised by Infinity Forum, about the direction Indian authorities may take to regulate virtual currencies. Sitharaman called for global regulatory support in lieu of crypto’s borderless nature. She noted that “technology has the power to sweep through borders”, henceforth, mere national measures will never be enough if regulators across the world aim to centralise the decentralized industry. Sitharaman also expressed concerns regarding the “ever-evolving” crypto, which makes it almost impossible for the governments to stay on top of them at all times.

Sitharaman said, “I am not sure they (government) can ever be on-the-top-of-it-kind of situation because it is ever changing and it is ever evolving.”

Given that the draft for the Crypto Bill is yet not finalised and unless the draft bill achieves cabinet approval, it cannot be introduced for discussion in the parliament. However, the main question of concern is if the reason behind the incomplete draft could in fact be a 180 degree turn towards an absolute ban on crypto over regulations?