• Days
  • Hours
  • Mins
  • Secs
  • Sun, 15 Sep 2019, 07:31 AM
  • 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) $10,357.80 (+0.25%)
  • Ethereum (ETH) $188.52 (+4.32%)
  • XRP (XRP) $0.263400 (+3.10%)
  • Bitcoin Cash (BCH) $306.39 (+2.72%)
  • Litecoin (LTC) $70.86 (+2.98%)
  • Bitcoin (BTC) $10,357.80 (+0.25%)
Sep 13, 2019 (Friday)
11:12
Libra Association head confident about crypto launch in H2 2020
10:42
Blockchain industry welcomes Mastercard-R3 collaboration, but skeptical about the future of private networks
09:52
tZERO to bring blockchain to film financing via new partnership
09:11
France mulls blocking Facebook's Libra project on European soil as FINMA chief weighs pros and cons of the cryptocurrency
07:26
Thailand's PTT, Energy Web Foundation to develop blockchain renewable energy marketplace
07:17
Russia’s Alfa-Bank launches liquidity management service on Waves Blockchain
06:40
Zelle co-founder Mike Kennedy replaces Adam Ludwin as CEO of Interstellar
06:34
Crypto Technicals: XMR/USD recovery lacks traction, price action capped below 21-EMA (75.86)
05:56
Crypto Technicals: BTC/USD trades range-bound, no clear directional bias
05:03
PundiX to launch a fully blockchain-powered phone Blok on Blok (BOB)
04:54
Cryptokitties maker Dapper Labs secures $11.2M to develop blockchain Flow, scores deals from Warner Music, Ubisoft
04:48
Crypto exchange Huobi likely to attempt backdoor IPO in Hong Kong
03:49
Binance's NYDFS-approved stablecoin BUSD is now live on Paxos, to be listed on Binance next week
03:33
Deutsche Telekom's T-Labs launches blockchain e-mobility pilot 'Xride'
Sep 12, 2019 (Thursday)
12:24
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:13
Binance Futures to go live on September 13
11:43
Santander issues $20M bond using Ethereum blockchain
08:55
Binance US to open user registration next week
07:38
Marshall Islands to launch a pre-sale for its blockchain-based national cryptocurrency
06:38
United Kingdom leads with most number of registered cryptocurrency exchanges: Study
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft