The need to regulate cryptocurrencies is loud and clear
3 years, 11 months ago

The need to regulate cryptocurrencies is loud and clear

Live Mint  

In March 2020, in a magisterial judgement, the Supreme Court set aside a circular of the Reserve Bank of India that banned regulated entities from providing any service related to the purchase and sale of virtual currencies. Whether any product, service or activity merits regulation and supervision depends on the risk of potential market failures or externalities that could imperil financial stability. Non-unique crypto risks may include the operational risk of hacking, as also the usual market, credit and counterparty risks—in the absence of regulatory protections such as deposit insurance or a liquidity facility from central banks—that non-bank finance products grapple with, too. A global fintech survey conducted by the International Monetary Fund and World Bank in early 2019 found that most jurisdictions agree that while crypto-assets present risks to investors, they do not yet threaten financial stability. This will help enhance confidence among market stakeholders and also build regulatory and supervisory capacity, while permitting empirical evidence to be garnered on possible risks.

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History of this topic

CEA Anantha Nageswaran calls for cost benefit analysis of cryptocurrencies. Here’s what he said
1 week, 6 days ago

CEA Anantha Nageswaran calls for cost benefit analysis of cryptocurrencies. Here’s what he said

Live Mint  

V Anantha Nageswaran, the Finance Ministry's Chief Economic Advisor today had some suggestions for regulators about support for innovation, including cryptocurrencies and online gaming. On Need For Differentiation in Financial, Non-Financial Regulations Nageswaran also said there is a need to differentiate between financial and non-financial sector related regulations so as to mitigate the excessive risk and instability that competition brings, …

RBI Governor Shantikanta Das Warns of Huge Risks to Financial Stability from Cryptocurrencies
1 month, 4 weeks ago

RBI Governor Shantikanta Das Warns of Huge Risks to Financial Stability from Cryptocurrencies

New Indian Express  

RBI Governor Shantikanta Das expresses concerns about cryptocurrencies, stating that they pose significant risks to financial stability. He argues that cryptocurrencies have the characteristics of money and could undermine the central bank's control over the monetary system. Das emphasizes the need for careful consideration and a cautious approach towards cryptocurrencies, considering the potential for instability and financial sector instability.

Retail investors should be cautious about Cryptos says RBI
7 months ago

Retail investors should be cautious about Cryptos says RBI

Deccan Chronicle  

Mumbai: The crypto ecosystem lacks accountability and stability and is marked by regulatory ambiguity as a result of which retail investors need to be more cautious, the Reserve Bank of India economists said in an article titled Decentralised Finance: Implications for Financial System in the central bank’s May Bulletin. However, developments such as the FTX crypto exchange collapse, decline in …

What are the FSB’s concerns about crypto asset intermediaries? | Explained
1 year ago

What are the FSB’s concerns about crypto asset intermediaries? | Explained

The Hindu  

The story so far: Published earlier this week, the Financial Stability Board ’s latest report on crypto-asset intermediaries sought measures to enhance cross-border cooperation and information sharing among local authorities. U.S. Securities and Exchange Commission Chair Gary Gensler accused Binance and its CEO Changpeng Zhao of an “extensive web of deception, conflict of interest, lack of disclosure, and calculated evasion …

Crypto Is For Criminals? No Real-World Use? 5 Myths About Cryptocurrencies Busted
1 year, 2 months ago

Crypto Is For Criminals? No Real-World Use? 5 Myths About Cryptocurrencies Busted

ABP News  

Cryptocurrencies have been experiencing remarkable growth over the past decade. Myth 1: Cryptocurrency Is For Criminals The perception that cryptocurrencies are primarily used by criminals often arises due to the anonymity they offer. While short-term price swings may be unpredictable, many long-term investors see the potential for substantial returns in the future as cryptocurrencies gain wider acceptance and adoption. Myth …

Crypto should be regulated as gambling, UK lawmakers say
1 year, 7 months ago

Crypto should be regulated as gambling, UK lawmakers say

The Hindu  

Bitcoin, Ether and other cryptocurrencies should be regulated as gambling given they are potentially used by fraudsters and pose significant risks to consumers, a panel of UK lawmakers said in a report on Wednesday. Regulating retail trading and investment in unbacked cryptocurrencies could create a 'halo' effect that leads consumers to think the activity is safer than it is, or …

US Fed, regulators jointly warn banks of liquidity risks from cryptocurrencies
1 year, 10 months ago

US Fed, regulators jointly warn banks of liquidity risks from cryptocurrencies

Live Mint  

Amidst vulnerabilities, illiquidity and bankruptcies that cryptocurrencies currently face, the US Federal Reserve along with other regulators have warned banks over liquidity risks that are related to certain sources of funding from crypto-asset-related entities. The board of governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a statement …

The way forward on crypto regulations
1 year, 10 months ago

The way forward on crypto regulations

Hindustan Times  

The finance ministers and the heads of central banks of G20 countries gathered this past weekend for a crucial meeting that could lay the foundations of future of crypto regulations. Finance minister Nirmala Sitharaman indicated ahead of the meeting that on the agenda will be the need for a standard operating procedure of sorts, for which all participants will need …

Cryptos Are Nothing but Gambling, Their Value Only Make-Believe: RBI Governor
1 year, 11 months ago

Cryptos Are Nothing but Gambling, Their Value Only Make-Believe: RBI Governor

News 18  

Reserve Bank governor Shaktikanta Das on Friday reiterated his call for an outright ban on cryptocurrencies, saying these are “nothing but gambling” and their perceived “value is nothing but make-believe.” To further its opposition to such currencies and also to take a lead over other central banks, the RBI recently launched its own digital currency, in the form of e–rupee …

Budget 2023: What Awaits The Crypto Sector? Everything You Need To Know
1 year, 11 months ago

Budget 2023: What Awaits The Crypto Sector? Everything You Need To Know

ABP News  

The 2023 Union Budget is nearly here and the biggest question that’s haunting the mind of crypto enthusiasts is simple — how will the Finance Ministry treat the virtual digital assets sector this time around? While 2022 saw several important milestones for the crypto sector, from the taxation of gains to the introduction of a central bank digital currency, the …

Binance CEO Zhao says don't fight crypto, regulate it
2 years ago

Binance CEO Zhao says don't fight crypto, regulate it

The Hindu  

Binance Chief Executive Officer Changpeng Zhao said on Friday regulation rather than opposition of the crypto sector is a better option for world governments as digital currencies become more mainstream. Regulation of crypto currencies has come into sharp focus following the collapse of several platforms, culminating in the crash of the FTX currency exchange earlier this month. It's better to …

FTX Crash Aftermath: What More Regulation Could Mean For The Future Of Digital Currencies
2 years, 1 month ago

FTX Crash Aftermath: What More Regulation Could Mean For The Future Of Digital Currencies

ABP News  

Coventry: The founder of the world’s largest cryptocurrency exchange, Binance CEO Changpeng Zhao, has called for more regulatory clarity after a week of crypto market chaos and a year in which investors are estimated to have lost US$2 trillion. Decentralised exchanges are non-custodial, so they allow individual investors full access to their crypto wallet balances and they can withdraw or …

Top US regulators say crypto poses financial stability risks
2 years, 2 months ago

Top US regulators say crypto poses financial stability risks

Associated Press  

WASHINGTON — Top regulators on Monday recommended a series of new safeguards to ensure that a growing and unregulated cryptocurrency market doesn’t imperil U.S. financial stability. Members of the Financial Stability Oversight Council met Monday to approve the recommendations of a 125-page report created in response to President Joe Biden’s March executive order on digital assets. Powell, who has recently …

Crypto Exchanges Now Required To Notify UK Authorities Of Suspected Sanction Breaches
2 years, 3 months ago

Crypto Exchanges Now Required To Notify UK Authorities Of Suspected Sanction Breaches

ABP News  

San Francisco: Crypto exchanges are now required to notify the UK authorities of any suspected sanctions violations under new regulations introduced in response to concerns that bitcoin and other crypto assets are being used to dodge restrictions imposed in reaction to Russia's invasion of Ukraine. ALSO ON ABP LIVE: India Emerging As 'Major NFT Destination': Study Crypto assets could include …

New crypto oversight legislation arrives in the U.S. as industry shakes
2 years, 4 months ago

New crypto oversight legislation arrives in the U.S. as industry shakes

The Hindu  

After 13 years, at least three crashes, dozens of scams and Ponzi schemes and hundreds of billions of dollars made and evaporated, cryptocurrencies finally have the full attention of Congress, whose lawmakers and lobbyists have papered Capitol Hill with proposals on how to regulate the industry. The Stabenow-Boozman bill would be a win for the cryptocurrency industry, which sees the …

Understanding cryptocurrencies
2 years, 5 months ago

Understanding cryptocurrencies

Hindustan Times  

There is a need for a broader international collaboration before cryptocurrency regulations can be drawn up in India, finance minister Nirmala Sitharaman told Parliament this week. In May, an entire currency — known as the Terra/Luna stablecoin pair — and a crypto-based lending platform known as Celsius crashed, wiping out tens of millions of dollars of wealth. Searching with just …

U.S. state regulator says it believes crypto lender Celsius is “deeply insolvent”
2 years, 5 months ago

U.S. state regulator says it believes crypto lender Celsius is “deeply insolvent”

The Hindu  

Vermont’s Department of Financial Regulation on Tuesday said it believes cryptocurrency lender Celsius Network is “deeply insolvent” and does not have the assets and liquidity to honour its obligations to customers and other creditors. The crypto lender has been involved in an unregistered securities offering, selling cryptocurrency interest accounts to retail investors including investors in Vermont, it said in a …

Cryptocurrencies 'clear danger', says RBI Governor Shaktikanta Das
2 years, 5 months ago

Cryptocurrencies 'clear danger', says RBI Governor Shaktikanta Das

Firstpost  

This comes in the backdrop of the government finalising a consultation paper on cryptocurrencies after gathering inputs from various stakeholders and institutions Mumbai: Reserve Bank Governor Shaktikanta Das on Thursday described cryptocurrencies as “clear danger” and said that anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name. In the foreword to …

Cryptocurrencies clear danger, says RBI Governor
2 years, 5 months ago

Cryptocurrencies clear danger, says RBI Governor

The Hindu  

The government is in the process of finalising a consultation paper on cryptocurrencies after gathering inputs from various stakeholders and institutions. In the foreword to the 25th issue of the Financial Stability Report released on Thursday, Das also said that as the financial system gets increasingly digitalised, cyber risks are growing and need special attention. In the foreword of the …

Crypto came tumbling after
2 years, 6 months ago

Crypto came tumbling after

The Hindu  

The precipitous downturn of the crypto market has brought cryptocurrencies back in the news. Price increases and decreases Crypto assets like Bitcoin have been subject to wide fluctuations in their prices since their inception. As the COVID-19 spread slowed down, people may have wanted to move their funds out of crypto assets and into more lucrative real investment opportunities arising …

Bubble in the air: The Hindu Editorial on the need for regulating cryptocurrencies
2 years, 6 months ago

Bubble in the air: The Hindu Editorial on the need for regulating cryptocurrencies

The Hindu  

The crash in the price of cryptocurrencies is a timely reminder to retail investors to stay far away from this highly speculative asset class. Since the supply of a lot of cryptocurrencies is limited by design, investing in them seemed like a good way to protect one’s wealth from inflation fuelled by central banks. There is little reason to believe …

The reasons behind the crashing crypto market
2 years, 6 months ago

The reasons behind the crashing crypto market

The Hindu  

The story so far: Bitcoin and many other cryptocurrencies have been crashing since they hit an all-time high late last year. Some sceptics have also argued that even though private cryptocurrencies can rise to the status of alternatives to fiat currencies over time, governments and central banks may not allow this to happen. If cryptocurrencies became widely acceptable, it would …

There's a new plan to regulate cryptocurrencies. Here's what you need to know
2 years, 6 months ago

There's a new plan to regulate cryptocurrencies. Here's what you need to know

NPR  

There's a new plan to regulate cryptocurrencies. Enlarge this image toggle caption Alex Peña/Getty Images Alex Peña/Getty Images But perhaps most importantly — and the thing that has skeptics most concerned — is that the bill defines most cryptocurrency as commodities, which would be overseen by the Commodity Futures Trading Commission, instead of securities, which would fall to the much …

Cryptocurrencies Yet To Pass Test Of Fiat Currency, Says CEA V Anantha Nageswaran
2 years, 6 months ago

Cryptocurrencies Yet To Pass Test Of Fiat Currency, Says CEA V Anantha Nageswaran

ABP News  

Sounding a note of caution, Chief Economic Adviser V Anantha Nageswaran said on Thursday that the cryptocurrencies have yet to pass the test to become fiat currency and at the same time it would be difficult to regulate them. He further said that unlike fiat money, cryptocurrencies cannot satisfy basic requirements such as having store value, widespread acceptability and unit …

Cryptocurrencies to be banned in India? FM Nirmala Sitharaman replies
2 years, 10 months ago

Cryptocurrencies to be banned in India? FM Nirmala Sitharaman replies

India Today  

Finance Minister Nirmala Sitharaman on Friday said that a decision on "banning or not banning" cryptocurrencies will be taken after consultations. She also said that the government's move to levy a 30 per cent tax on gains from cryptocurrencies has nothing to do with the legality of private digital currencies in the market. "Banning or not banning cryptocurrencies will come …

Cryptocurrencies are threat to macroeconomic and financial stability, warns RBI governor
2 years, 10 months ago

Cryptocurrencies are threat to macroeconomic and financial stability, warns RBI governor

India TV News  

Highlights RBI Guv Shaktikanta Das said cryptocurrencies are threat to macroeconomic, financial stability. RBI Governor Shaktikanta Das on Thursday made it clear that private cryptocurrencies are a threat to macroeconomic and financial stability, and undermine its ability to deal with challenges on the two fronts. Private cryptocurrencies or whatever name you call it are a threat to our macroeconomic stability …

Budget 2022: Cryptocurrency sector riddled with bottlenecks; time to bring policy change
2 years, 10 months ago

Budget 2022: Cryptocurrency sector riddled with bottlenecks; time to bring policy change

Firstpost  

Union Budget 2022-23: The finance minister should consider formulating policies to leverage growth from emerging technology such as blockchain tech which serves as the backbone of crypto The cryptocurrency sector in India is riddled with regulatory bottlenecks which makes it challenging to operate retail businesses. Given that crypto exchanges will have to undertake operations to keep markets from turning illiquid, …

Private cryptocurrencies pose immediate risks to customer protection, prone to frauds: RBI
2 years, 11 months ago

Private cryptocurrencies pose immediate risks to customer protection, prone to frauds: RBI

The Hindu  

Private cryptocurrencies pose immediate risks to customer protection and are prone to frauds and extreme price volatility, given their highly speculative nature, the Reserve Bank of India said in its financial stability report released on Wednesday. The latest report noted that the proliferation of private cryptocurrencies across the globe has sensitised regulators and governments to the associated risks. "Private cryptocurrencies …

Private Cryptocurrencies Pose Immediate Risks to Customer Protection, Says RBI
2 years, 11 months ago

Private Cryptocurrencies Pose Immediate Risks to Customer Protection, Says RBI

News 18  

Mumbai, Dec 29: Private cryptocurrencies pose immediate risks to customer protection and are prone to frauds and extreme price volatility, given their highly speculative nature, the Reserve Bank of India said in its financial stability report released on Wednesday. The latest report noted that the proliferation of private cryptocurrencies across the globe has sensitised regulators and governments to the associated …

Govt may not ban cryptocurrencies, regulation likely: Reports
3 years ago

Govt may not ban cryptocurrencies, regulation likely: Reports

India Today  

Cryptocurrencies may not be completely banned in India and the government may create a framework to regulate highly risky virtual assets, as per multiple reports. The development comes at a crucial time as the government’s upcoming cryptocurrency bill has spooked investors and other stakeholders. Read | Cryptocurrency Bill: Raining on India's crypto parade A few days ago, Finance Minister Nirmala …

Why regulating cryptocurrencies is a big challenge for govt | OPINION
3 years ago

Why regulating cryptocurrencies is a big challenge for govt | OPINION

India Today  

Much has been debated over the cryptocurrencies that has posed a significant regulatory challenge to policymakers. As free people of free nations, one is free to buy anything that they want with their tax-paid money, and hence people are free to buy cryptos. But why did the rest of the world give credence to such a currency, to the extent …

U.S. banks must seek regulatory permission before engaging in certain crypto activities: regulator
3 years, 1 month ago

U.S. banks must seek regulatory permission before engaging in certain crypto activities: regulator

The Hindu  

U.S. banks must seek and obtain written permission from their bank supervisors before engaging in certain activities involving cryptocurrency, a major regulator said on Tuesday. The Office of the Comptroller of the Currency said banks must be able to demonstrate they have appropriate risk management tools before taking on activities like providing custody services for customers' crypto holdings. “Because many …

Regulating cryptocurrencies: Treating them as speculative assets
3 years, 1 month ago

Regulating cryptocurrencies: Treating them as speculative assets

The Hindu  

The story so far: The Union Government is said to be considering a proposal to tax cryptocurrency transactions in the country. THE GIST With cryptocurrencies such as Bitcoin gaining popularity among citizens, the Centre has been compelled to take a stance on the legal status of these private currencies. The Centre might not be so keen on banning private cryptocurrencies …

Explained | Why are so many investors rallying behind bitcoin?
3 years, 1 month ago

Explained | Why are so many investors rallying behind bitcoin?

The Hindu  

The story so far: Bitcoin, the most popular private cryptocurrency in the world, has been rallying this year, hitting an all-time high of over $66,000 last week. Bitcoin enthusiasts see the rise in the price as a validation of their belief that private cryptocurrencies are a viable alternative to fiat currencies such as the dollar and the rupee. Their core …

SEC’s Gensler says crypto investors need more protection
3 years, 4 months ago

SEC’s Gensler says crypto investors need more protection

Associated Press  

— The chairman of the Securities and Exchange Commission said that investors need more protection in the cryptocurrency market, which he said is “rife with fraud, scams and abuse.” Gary Gensler, appointed by President Joe Biden to lead the body that regulates securities markets, listed several areas where crypto needed to be reigned in or regulated, particularly with regard to …

White House reviews ‘gaps’ in cryptocurrency rules as bitcoin swings wildly
3 years, 6 months ago

White House reviews ‘gaps’ in cryptocurrency rules as bitcoin swings wildly

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Administration officials are discussing whether there are guardrails on …

Experts back govt's hard line on cryptocurrencies
3 years, 7 months ago

Experts back govt's hard line on cryptocurrencies

China Daily  

Chinese regulators have long seen cryptocurrencies, including Bitcoin and Ethereum, as crypto assets, instead of real currencies. China should maintain its hard line on controlling virtual currencies to prevent wild speculation that may cause major financial losses to investors, according to experts. Financial institutions, including online payment platforms, should not offer clients any service involving cryptocurrencies such as registration, trading …

Cryptocurrencies are having a wild 2021.
54 years, 11 months ago

Cryptocurrencies are having a wild 2021.

Slate  

It has been more than a decade since Bitcoin set the stage for the popularization of new of cryptocurrencies and blockchain technologies. But as fortunes have been made and lost over and over again—Bitcoin just hit new record levels after Elon Musk announced that Tesla had invested $1.5 billion in the cryptocurrency and would soon accept it for payment—the slow …

Cryptocurrency has the power to revolutionise a corrupt banking system
4 years, 2 months ago

Cryptocurrency has the power to revolutionise a corrupt banking system

The Independent  

The best of Voices delivered to your inbox every week - from controversial columns to expert analysis Sign up for our free weekly Voices newsletter for expert opinion and columns Sign up to our free weekly Voices newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. Since the late 90s, thousands of …

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