Can't ban crypto without international collaboration: Nirmala Sitharaman

economictimes.indiatimes.com:

Nirmala Sitharaman said that cryptocurrencies could be banned or prohibited only after significant international collaboration on the risks, benefits, evolution of common taxonomy and standards. Sitharaman's statement on cryptocurrencies or Virtual Currencies (VCs) in Parliament was in response to a five-pointer question by Thirumavalavan, a member of Parliament from Tamil Nadu's Chidambaram. The questions were about the Reserve

's cautious stance on crypto assets, concerns over adverse effects of crypto on the Indian Economy and India's progress in framework to legalize or restrict cryptocurrencies in the country.

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RBI's view is to prohibit cryptocurrencies due to destabilising effects on the monetary and fiscal stability of a country. The RBI has recommended framing of legislation on this sector, said Sitharaman's reply. The central bank has been quite vocal about this view on several occasions. Governor Shaktikanta Das had made it clear that crypto has no underlying fundamentals and can be a potential threat to economic and financial stability. «Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,» Sitharaman said. The response reiterated that cryptos can't be 'treated' as currencies because every modern