The Reserve Bank of India, RBI, recently commented on private cryptocurrencies and the risks involved. Indian regulators will strike crypto again in less than two days until it closes in 2021. After this year, RBI is working hard to regulate cryptocurrency trading in India.
According to the central authority, cryptocurrencies stake their holders for money laundering, terrorist financing and as a fraud mechanism. In addition, private cryptocurrencies vary in value, which makes them an unreliable investment option.
The Reserve Bank of India is not content with private cryptocurrencies, and their recent views can confirm it. While rbi does not come with crypto regulations, its attacks on tokens reappear before the end of 2021.
RBI urges Indians to be wary of cryptocurrencies as they are exposed to fraud, money laundering and terrorist financing. But that view emerged after the agency considered adopting its centralized currency, or CBDC. This shows that the central bank has no particular opinion about crypto and its acceptance or full regulation.
The report said crypto was part of the illicit funding, including the introduction of virtual systems that hurt investors’ economies. RBI believes that crypto is attacking the traditional economic model in India.
Attacks on private cryptocurrencies have been going on since November
This latest take from the RBI on private cryptocurrencies is reminiscent of that November statement. Last month, RBI Governor Shaktikanta Das said that crypto was destabilizing the economy. But Das believes the market is not regulated. Therefore information about him is very limited.
In a statement, the central bank also warned of the growth of private crypto, DeFi operations and trading. This operation is illegal for RBI and uninformed for new fans.
Banking in India could continue its regulation until 2022 due to recent strong opinion. At the same time, crypto acceptance is increasing in India after new technologies, tokens and the development of DeFi.
The cryptocurrency market is booming, with a downward trend of up to 6 percent in the last seven days. Bitcoin was trading at $47,945, up from 1.94 percent last week. But Ethereum arrived at $3,793 and has lost more than 5.20% of its value since December.