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.