International collaboration requires to ban or regulate crypto: Indian finance minister


Indian finance minister Nirmala Sitharaman stated that the Central Bank wants crypto ban but it will not be possible without international collaboration.

India is a blockchain technology-friendly country. In Q1 2022, the government of India passed regulatory approval for the Reserve Bank of India (RBI), the country’s central bank, to issue Central Bank Digital Currency (CBDCs) but the government never showed a clear stance on crypto regulation. The Indian Central Bank always opposed the crypto industry and tried to bring huge restrictions to prohibit the crypto industry from using banking services.

In Lok Sabha, SHRI THIRUMAAVALAVAN THOL asked questions from Indian finance minister Nirmala Sitharaman. In one of the questions, an Indian Loksabha member asked whether RBI suggested regulating the crypto industry. 

Nirmala Sitharaman, finance minister of India, answered and said that RBI always raised issues related to cryptocurrencies as a risky element, and according to the central bank cryptocurrencies should be prohibited.

Further Hon’ble finance minister said that proposed suggestions by RBI will be possible in the situation of international government agencies’ collaboration because the nature of cryptocurrencies is borderless.

“Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”

Finance minister hints no ban 

Just a couple of months ago, during an interview, the Indian finance minister said that no steps will be taken by the government to degrade the innovations but the crypto community needed to wait to see a better regulatory crypto framework.

However, it happened many times when the Indian Finance Minister always took the crypto regulation or ban questions in joke and never passed a clear answer, whether India will adopt or ban cryptocurrencies.

Read also: Private crypto companies have better ability, says Australian central bank governor