RBI is looking to ban cryptocurrencies in India but needs global support to bring it into action.
Cryptocurrencies are unregulated in India however, the government is in midst of consultations to draft legislation regulating it.
Nirmala Sitharaman said that the RBI is in favour of banning cryptocurrencies, fearing their destabilizing impact on monetary and fiscal stability.
Concerns expressed by RBI on the destabilising effect of cryptocurrencies on the monetary and fiscal stability of a country
Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage
The government declared that the bill shall be announced by May 2022. But the bill is still awaited.
The government has so far refused to make any public comments on cryptocurrencies, because of the confusion over their classification.
She also stated that a circular released by RBI on April 6, 2018, where RBI states to prohibit its regulated entities from dealing in virtual currencies (VCs).