RBI: International regulation needed for crypto activities

These regulations should be based on the principle of ‘same activity, same risk, same regulation’ approach.

FPJ Web DeskUpdated: Monday, January 02, 2023, 06:32 PM IST
article-image
RBI: International regulation needed for crypto activities | File/ Representative image

The Reserve Bank of India has suggested a framework for international regulation of crypto currency after realising the turmoil in the crypto asset market.

The central bank, in its financial stability report that was released on December 29, 2022, said that "the turmoil in the crypto asset market highlights their intrinsic volatility and structural vulnerabilities, whereas their interconnectedness with the traditional financial system is increasing."

RBI has also suggested that there has to be some consistency in regulations and supervisory approaches at the international level. These regulations should be based on the principle of ‘same activity, same risk, same regulation’ approach.

This framework proposed by the RBI says that the authorities should have appropriate resources, power, and tools to supervise, oversee, and regulate crypto markets and asset activities proportionate to the amount of financial stability risk they pose, both domestically and internationally.

Additionally, the RBI has further suggested that there should be a comprehensive governance and effective risk management framework that addresses financial stability risks which arise from interconnectedness.

With inputs from IANS

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Congress leader tweets Ministry of Power's letter favouring Adani's Mundra Port to transport coal

Congress leader tweets Ministry of Power's letter favouring Adani's Mundra Port to transport coal

Supreme Court refuses grant Maharashtra license to bike taxi aggregator Rapido

Supreme Court refuses grant Maharashtra license to bike taxi aggregator Rapido

Beyond PM Modi, meet non-BJP leaders caught on camera with Gautam Adani

Beyond PM Modi, meet non-BJP leaders caught on camera with Gautam Adani

Maggi, Nescafe prices may increase in 2023 due to higher production costs

Maggi, Nescafe prices may increase in 2023 due to higher production costs

Earnings 2023 LIVE: Adani Ports net profit drops to Rs 1,336.51 cr; Hero MotoCorp net profit jumps...

Earnings 2023 LIVE: Adani Ports net profit drops to Rs 1,336.51 cr; Hero MotoCorp net profit jumps...