• Mon, 14 Oct 2019, 04:20 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Some cryptocurrency trading may shift to peer-to-peer mode, says Reserve Bank of India

Fri, 31 Aug 2018, 02:56 am UTC

The Reserve Bank of India (RBI) this week released its Annual Report 2017-18 which includes a section on “Cryptocurrency: Evolving Challenges.”

In April, the central bank issued circular prohibiting banks from extending banking services to cryptocurrency exchanges. September is going to be crucial month as the Supreme Court of India is going to rule on the matter. In the same month, regulators are also expected to be ready with the final draft of the cryptocurrency regulation laws.

In its annual report, the RBI has highlighted the risks posed by cryptocurrencies in areas of consumer and investor protection, operational risks, and use in illegal activities, including tax avoidance, among others.

“The cryptocurrency eco-system may affect the existing payment and settlement system which could, in turn, influence the transmission of monetary policy,” it said.

The central bank also noted the position other countries have taken on cryptocurrency regulation, including the United State, Japan, and China.

While discussing the aftermath of its April circular, the RBI said:

“Developments on this front need to be monitored as some trading may shift from exchanges to peer-to-peer mode, which may also involve increased usage of cash. Possibilities of migration of crypto exchange houses to dark pools/cash and to offshore locations, thus raising concerns on AML/CFT and taxation issues, require close watch.”

The central bank reiterated its optimism for the underlying distributed ledger technology saying that the technology’s adoption “in the domain of payment, clearing and settlement solutions holds the promise of significant economic benefits in future.”

The RBI has also formed an inter-departmental group to explore the possibility of introducing a central bank digital currency (CBDC). Recent reports also suggest that it has set up a new unit to accelerate its efforts in the area of cutting-edge technologies such as blockchain and artificial intelligence (AI).

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,305.90 (-1.62%)
  • Ethereum (ETH) $183.05 (-0.86%)
  • XRP (XRP) $0.292300 (+4.36%)
  • Bitcoin Cash (BCH) $226.30 (-0.43%)
  • Litecoin (LTC) $56.70 (-1.39%)
  • Bitcoin (BTC) $8,305.90 (-1.62%)
Oct 14, 2019 (Monday)
12:06
BMW, Ford, GM and others working on proof of concept for blockchain-based vehicle identity system
12:01
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:01
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
10:49
Crypto Technicals: LTC/USD finds stiff resistance at 21-EMA (58.62), breakout confirms further upside
10:46
G7 says global stablecoins like Libra pose threat to financial stability: Report
09:52
Global stablecoins could become systemically important: Financial Stability Board Chair
09:37
Crypto Technicals: Ripple (XRP) spikes higher, hits 4-week high (0.29369), bias bullish
09:07
Crypto Technicals: ETH/USD consolidates above 200H SMA, intraday bias turning bullish
07:01
U.S. IRS wants to know your crypto ownership in updated income tax form
06:59
U.S. SEC, CFTC, FinCEN issue rare statement warning crypto users to abide banking laws
06:56
Crypto Valley Association joins International Digital Asset Exchange Association
06:17
Crypto Technicals: BTC/USD extends sideways above 200H SMA support (8277), weakness likely on break below
06:17
tZERO and Box Digital-owned firm files with SEC to launch regulated security token market
06:10
Blockchain trade finance network Marco Polo pilots first trade transactions between Russia and Germany
06:08
Crypto exchange Coinbase secures e-money license from Central Bank of Ireland
04:30
World Federation of Exchanges urges UK FCA not to ban sale of crypto derivatives to retail investors
04:25
Telegram may postpone Gram token launch after SEC stops U.S. crypto sale
04:05
Mastercard, Visa, eBay, Stripe, Mercado Pago abandon Facebook-led Libra Association
Oct 11, 2019 (Friday)
13:27
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
13:11
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft