RBI Reportedly Established Department To Regulate Crypto Issues

The central bank previously banned crypto exchanges in India in 2020. However, this was later lifted by the Supreme Court.

The Reserve Bank of India appears to be taking a softer stance on the crypto industry as the central bank has reportedly set up a new fintech department to regulate crypto exchanges and more. According to reports, this information comes from an internal circular dated January 7, 2022.

Operational since January 4, 2022, this new department will now be the point of contact within RBI for all fintech-related activities, including crypto-related issues. Going forward, this department is also expected to help create regulations for cryptocurrency and even its upcoming central bank digital currency (CBDC).

The new report is interesting because the RBI has advocated in the past for a complete cryptocurrency ban in India. It had recently done so at the 592nd RBI Central Board Meeting held in Lucknow on December 17, 2021. The central bank had previously banned crypto exchanges in India in 2020. However, this was later lifted by the Supreme Court.

The government’s position on crypto

For its part, the government is still considering its approach to fight against cryptos. Reports suggest that he is currently considering changes to the proposed legal framework for cryptos, which would mean that the Cryptocurrency and Official Digital Currency Regulation Bill, 2021, will now be tabled in the next session of parliament.

He believes that there are aspects of the bill that require further deliberation, discussion and comment from the public. These include the government implementing a central bank digital currency (CBDC) which will be recognized under RBI law. Another reason for this is the government’s belief that the new cryptocurrency law must conform to a global framework that is still being developed.

Also Read: Indian Government Delays Crypto Bill, May Not Be Introduced During Winter Session of Parliament

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