India’s Caution: Crypto Framework Delayed Over Systemic Risk Concerns–Reuters

The recent Reuters report reveals that India tends to avoid creating a comprehensive legislative framework for the regulation of cryptocurrencies, and is in a flagrant contradiction with countries like the United States.

Instead, the Indian government plans to maintain partial control, driven by the interests that are fully integrated Digital assets In the prevailing financial system it can be “regular risks”.

India delays encryption legislation

A document Reuters reviewed the details of the Indian government’s perspective and reflects the views of the Indian Reserve Bank (RBI). The document argues that the risk management related to encrypted currencies through the organization will be effectively difficult.

The global acceptance of encrypted currencies has grown, especially in the United States, where President Donald Trump led a new regulatory era for the digital asset industry with the approval of the main bills that aim to enhance a more supportive environment to adopt and use encrypted currencies.

Meanwhile, while China maintains a ban on cryptocurrencies, it is thinking Stablecoin. Other countries, such as Japan and Australia, are developing regulatory frameworks as well.

The Indian government document indicates that the official organization of encrypted currencies can give them “legitimacy” and may make the sector systematic.

This is not the first time that India has wrestled with the issue of regulating digital assets. In 2021, the government drafted a draft law aimed at banning private encrypted currencies, but in the end, it chose not to advance the legislation.

During the presidency of the Group of Twenty in 2023, it called on India to a The global framework To organize digital assets, but a discussion paper was corrected about the country’s position. The government indicated that it would re -evaluate its position after noting how to make the official character to the United States to use the cryptocurrency.

Stablecoins threatens digital payment safety?

Currently, global digital assets are allowed to work in India, provided that they register a local government agency that takes care to mitigate the risk of money laundering.

However, RBI has constantly warned of the risks associated with encrypted currencies, which leads to a great slowdown in Trading activities Between the official financial system in India and digital assets.

Despite these challenges, the Indians have invested about $ 4.5 billion in various digital assets, although the document indicates that this level of investment is currently not currently the risks of regular stability.

The report also sheds light on the effects of the United States that adopts and promoted Stablecooins. PaymentEspecially after the passage of the genius law, which is the basis for the full use of these assets.

The Indian government has also confirmed that Stablecoins can risk the fragmentation of national payment systems, such as UPI, thus undermining the integrity of the digital scene in India.

Distinctive image from Dall-E, Chart from TradingView.com

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