Crypto law needs global teamwork: Finance Minster

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Crypto law needs global teamwork: Finance Minster

  • RBI recommended ban on cryptocurrencies citing ‘destabilizing effects’ for country’s monetary and fiscal health.

Law to ban crypto

  • Law to regulate or ban cryptocurrencies can only be effective once there is some form of international agreement in place.
  • Cryptocurrencies require international collaboration to prevent regulatory arbitrage as they are borderless.
  • RBI: cryptocurrencies are not currency because every modern currency needs to be issued by central bank or Government.

Value solely speculative

  • RBI had been cautioning people against the use of virtual currencies since 2013.
  • April 2018: RBI prohibited regulated entities from dealing in virtual currencies or providing services for facilitating any person or entity in dealing with or settling them.
  • It was set aside by SC in March 2020.