New Delhi, January 2: Noting that there is turmoil in crypto assets market, the Reserve Bank of India (RBI) has suggested a framework for international regulation of such crypto activities.
In it’s financial stability report, which released on December 29, 2022, the central bank has said that “the turmoil in crypto assets market highlights their intrinsic volatility and structural vulnerabilities, whereas their interconnectedness with the traditional financial system is increasing”. Cryptocurrency Prices in India.
The central bank has suggested that there should be consistency at the international level on regulatory and supervisory approaches. These regulatory approaches should be grounded in the principle of “same activity, same risk, same regulation” approach.
The framework proposes that authorities should have appropriate powers, tools and resources to regulate, supervise, and oversee crypto assets activities and markets, both domestically and internationally, proportionate to the financial stability risk they pose. Demonetisation: Supreme Court Upholds Central Government’s 2016 Note Ban Decision, Says ‘There Was Consultation Between Centre and RBI’.
In addition to this, the RBI report has further suggested that there is a need to prepare comprehensive governance and effective risk management frameworks, which address financial stability risks that arise from interconnectedness.
(The above story first appeared on Morning Tidings on Jan 02, 2023 03:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).
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