“Cryptocurrencies are Not a Threat” – Remarks FSB On India’s Crypto Concern
It looks like the crypto market is celebrating the New Year in India. With RBI citing FSB’s remark, the market appears quite appreciated.
Crypto Stance in India
According to the latest coverage by Quartz Media, FSB (Financial Stability Board), an international body that monitors and review the global financial system has recently appreciated cryptocurrency and said that the virtual currencies are not a threat.
The note was added by Reserve Bank of India (RBI), an Indian central bank in a report released in connection with cryptocurrency regulation in the last week. FSB’s comment reads as follows;
”The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets. Its initial assessment is that crypto-assets do not pose risks to global financial stability currently,”
FSB was formed in April 2009 when global financial crises hit the market. It was established by Group of Twenty (G-20) finance ministers and central bank governors including the UK, USA, India, and China.
No Clarity
Cryptocurrency in India is never so easy, it was all along challenging for two years. Since the circular sent out to banks to stop servicing cryptocurrency-related operations to a group of individuals expecting regulatory clarity, Indian regulatory bodies seem not yet serious about the cryptocurrencies within the nation.
@SecretaryDEA Please help our voices be heard. Positive crypto regulations in India will help create wealth and jobs for millions of Indians. Millions of youth in India want to see positive crypto moves by the government.
Jai Hind ??
— Nischal (WazirX) ⚡️ (@NischalShetty) January 2, 2019
Nevertheless, in last week, Indian parliament made a serious note, where Pon Radhakrishnan, the minister of state for finance addressed Lok Sabha, the lower house of Indian parliament;
“In absence of a globally acceptable solution and the need to devise a technically feasible solution, the department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations,”
The unclear signal by authorities has kept investors at bay –certainly, traders and crypto enthusiasts cannot withdraw their crypto funds in fiat yet. Besides India, the other member countries of FSB including the US are still uncertain over the adoption of cryptocurrency. As far as India and cryptocurrency are concerned, RBI with FSB’s remark had also left a reminder to all those waiting for the final assessment on digital assets within the country. It added ‘wait and watch policy towards crypto assets’, and continued;
“The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become more widely used or interconnected with the core of the regulated financial system,”
What’s your best advice to regulate cryptocurrency in India? share your opinion.
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