RBI Governor Cautions About Crypto observing the Collapse of Terra LUNA, UST
May 24, 2022 9:52 AM
The Reserve Bank of India( RBI), has advised about investing in the crypto market following the collapse of cryptocurrency terra( LUNA) and stablecoin terrausd( UST). “ We've been advising against crypto and look at what has happened to the crypto market lately, ” stated Governor Shaktikanta Das.
Reserve Bank of India Governor on Crypto Market and Regulation
In a recent interview with CNBC TV18 on Monday, The governor of the Reserve Bank of India( RBI), Shaktikanta Das, talked about the crypto market downturn and the regulation of crypto assets.
“ We've been alerting against crypto and look at what has happened to the crypto market recently, ” the governor said, stressing
Had we been regulating it ahead, then people would have raised questions about what happened to regulations. The crypto market has exfoliate over $1.5 trillion since November last year and nearly$ 500 billion since the start of the month. The market recession was worsened by the fall of cryptocurrency terra( LUNA) and algorithmic stablecoin terrausd( UST).
The Reserve Bank of India Governor, Das described cryptocurrency saying, “ This is thing whose basic( value) is nothing. ” He added There are big questions on how do you regulate it. Our position remains genuinely clear, it'll seriously undermine the financial, monetary and macroeconomic stability of India.
The Reserve Bank of India(RBI) also lately advised that crypto could lead to the dollarization of the Indian economy. The governor believes that the Indian government and the central bank’s have same stance on crypto. “ We've conveyed our position to the government and they will take a considered call, ” Das stated. “ I suppose the utterances and statements coming out from the government are more or less in sync. They're also similarly concerned. ”
Meanwhile, the government of India has been working on cryptocurrency legislation lately. officials from the Finance Ministry have been discussing with the International Monetary Fund(IMF) and the World Bank on how to regulate crypto.
According to Indian Finance Minister Nirmala Sitharaman who said in April that the decision on crypto regulation won't be rushed.
However, cryptocurrency income is presently taxed at 30% in India, and a 1% tax subtracted at source(TDS) will start levying on crypto trades in July.