Cryptocurrencies raise concerns for the Reserve Bank of India (RBI) in the context of macroeconomics and financial stability. This was stated by regulator chief Shaktikanta Das at the BFSI Insight Summit.
According to him, the RBI has presented its view to the Indian government, which “is actively studying this issue and will take a decision on it.” Das stressed that the regulator has “serious concerns” about digital assets.
The official also cast doubt on the reliability of reports about the number of crypto investors and the size of the industry in the country. Earlier, local media reported that digital assets were owned by more than 7% of the population, and the Indian market had grown 641% over the past year.
“I am not confident about the veracity of these figures. Of course, my view may not be entirely correct, since we do not have full information about these assets, as they are not regulated by us or by any other central bank. But I still believe that the number of investors appears clearly exaggerated, as more than 70% of them have put in only 1,000 rupees (~$13.44) into cryptocurrencies,” he said.
Despite Das’s remarks, Indian politicians appear to have noted the growth of the cryptocurrency industry in the country. On 15 November the Parliament of India’s Standing Committee on Finance проведет a meeting with industry experts.
According to Business Insider, participants will include representatives of the Binance-backed exchange WazirX, CoinSwitch Kuber, CoinDCX, as well as members of the Blockchain and Crypto Assets Council and the Internet and Mobile Association of India.
Data from WazirX also suggest a surge in the number of crypto investors. The company said that in 2021 its user base grew more than tenfold, surpassing 10 million people. Over the last 12 months, the platform’s total trading volume exceeded $38 billion.
In late January 2021, media reports indicated that Parliament of India was considering the government’s proposed bill to ban cryptocurrencies.
Since April, Indian companies report transactions involving digital assets, as well as the volume, and advances and deposits “from any persons”.
In May, ForkLog reported that RBI asked banks to sever ties with Bitcoin exchanges. Following this, the regulator urged regulated institutions not to reference the repealed directive banning cryptocurrency operations.
In the same month, the government discussed creating a committee that will study regulation and various uses of blockchain.
In June, Bloomberg sources said the government would amend the cryptocurrency ban bill and will consider regulating this class of assets.
As recalled, in October local newspapers reported that India planned to abandon a full ban in favour of regulating them. The corresponding bill could be introduced in February 2022.
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