The Reserve Bank of India (RBI) reiterated its anti-crypto stance in the most recent update in the Indian crypto arena. This time, though, the RBI warned investors about the “immediate risks” posed by private cryptocurrencies in particular.
The Indian Central Bank recently released a financial stability report that slammed private cryptocurrency, claiming it is a direct threat to consumer protection, anti-money laundering, and counter-terrorism financing. In addition, the bank reaffirmed its long-standing anti-crypto stance, citing long-term concerns to capital flow management, financial and macroeconomic stability, monetary policy transmission, and currency substitution.
“Private cryptocurrencies pose immediate risks to consumer protection and anti-money laundering (AML)/combating the financing of terrorism (CFT). They are also prone to frauds and to extreme price volatility, given their highly speculative nature. Longer-term concerns relate to capital flow management, financial and macro-economic stability, monetary policy transmission and currency substitution”, stated the report.
The research also raised concerns about the global proliferation of private cryptocurrencies. Which, has caused authorities and governments to become more aware of the risks. The RBI cited data from the Financial Action Task Force (FATF) that showed an increase in anonymity-enhanced cryptocurrencies (AECs). Also, as well as DEX platforms, private wallets, and other services. According to the Central Bank, this significant increase in financial anonymity could harm the country’s economy in the future.
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