India Delays Crypto Regulation Amid Concerns of Systemic Risks
TLDR
- RBI warns that regulating cryptocurrencies could legitimize the sector and increase systemic financial risks.
- India has not fully regulated crypto, fearing that it may disrupt its financial system by legitimizing digital assets.
- Despite its hesitation, India has imposed taxes on crypto gains and set rules for global exchanges operating locally.
- RBI notes that stablecoins’ widespread use could weaken India’s digital payment systems, including UPI.
India is reportedly delaying comprehensive regulation for cryptocurrencies, with the Reserve Bank of India (RBI) cautioning that implementing such rules could legitimize digital assets, thereby posing systemic risks to the country’s financial stability. According to…
