A severe warning has just been issued to everyone in India who invests in cryptocurrency by Reserve Bank of India governor Shaktikanta Das. He wants people to be aware that investing in these virtual currencies has some extremely high dangers. Within the Indian crypto community, this warning has generated a great deal of agitation. More and more Indians are becoming enthusiastic about cryptocurrencies and making investments in them. But the RBI is concerned because they believe there is a serious risk associated with these digital currencies.
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World Economic Forum
The Open Forum took place in Davos and was a huge event. A greater number of people may take part in the World Economic Forum’s activities thanks to the Open Forum event style. Each year, it returns to Davos and was inaugurated in 2003. This event attracts a lot of leaders from many disciplines. Anyone from anywhere in the globe who wishes to participate is welcome to join the Open Forum. Talking with the panelists is possible by attending several sessions.
The Warning
The Open Forum took place on 20th January, 2024, where the governor of the Reserve Bank of India, Shaktikanta Das shared his viewpoint on cryptocurrency. Das expressed concern about the growing popularity of cryptocurrencies and issued a warning that there may be issues down the road.
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He also discussed the potential impact of cryptocurrency on the financial stability of India and its banking sector. He said there isn’t anything strong backing it. Although it’s not the same as traditional money, it may eventually be that way. In such cases, it might be applied towards purchases. However, cryptocurrency has some hazards, particularly for banks. Thus, it’s something to exercise caution with. Das’ statements were made subsequent to the US Securities and Exchange Commission approving Bitcoin exchange-traded funds.
The SEC Approval
Eleven Bitcoin exchange-traded funds have just received authorization from the U.S. Securities and Exchange Commission (SEC), which is in charge of overseeing the securities markets and defending investors in the United States. This implies that investors do not need to hold or own the digital currency in order to make Bitcoin stock market investments.
Das said that things will be regulated differently in India. He asserted that we must take care of our country, and that the SEC is responsible for maintaining its own.
Non-Compliance Crypto Stance
Nine offshore cryptocurrency exchanges received a notice to appear for their scheduled response from The Financial Intelligence Unit (FIU) of the Finance Ministry last month. A restriction on their website addresses in India was also requested from the Ministry of Electronics and Information Technology. And the reason for it is that these exchangers are being accused of breaking Indian laws against money laundering. Nine exchanges have been conducting unlawful operations in India, according to the warning sent by the FIU. Exchanges including Gate.io, Bittrex, Bitstamp, MEXC Global, Bitfenex, Kucoin, Huobi, Kraken, and Binance received the notice.
Conclusion
It is important for supporters and investors to proceed cautiously as the RBI Governor’s warning clouds the Indian crypto industry. It is important to pay attention to the regulatory issues and potential hazards mentioned in the warning. Instead, while using cryptocurrency, people should be well-informed, aware of how regulations are changing, and proceed with caution.
