RBI Has Conveyed its Cryptocurrency Concerns to the Government, Says Governor

Although the Reserve Bank of India recently issued a new circular clarifying that digital assets are not outlawed in the country, the entity still believes they carry significant risks. As such, the RBI has taken its concerns to the government, asserted the bank’s governor – Shaktikanta Das.

• The world’s second-most populated nation has always had a complicated relationship with the cryptocurrency space.
• An RBI directive from 2018, which most people considered as an all-out ban on the industry, forbade all organizations dealing with the bank to operate with crypto assets.
• However, India’s Supreme Court lifted the decision in 2020, which led to a massive boom in the market from locals.
• Since then, though, the government and the RBI have dabbled with regulations and threats, including a flat-out ban on Bitcoin.
• CryptoPotato reported in late May when the central bank said digital assets are not outlawed as banks, and other entities may continue to carry out “customer due diligence processes in line with regulations governing standards for KYC, AML, CFT…”
• Nevertheless, the bank still has no love lost for the industry. RBI’s Governor, Shaktikanta Das, said at an online press conference reported by Bloomberg that the organization still considers digital assets as highly risky and has sent its remarks to the government.

• “There is no change in RBI’s position. We have major concerns around cryptocurrency, which we have conveyed to the government.”