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Economy
Mahesh

21/07/22 04:48 AM IST

RBI recommends ban on Cryptocurrencies

In News 
  • Finance Minister Nirmala Sitharaman said that the Reserve Bank of India (RBI) has recommended to the government that it should frame regulations for cryptocurrencies.
Cryptocurrency 
  • Cryptocurrencies are not a currency because every modern currency needs to be issued by the Central Bank / Government.
  • The value of fiat currencies is anchored by monetary policy and their status as legal tender, however, the value of cryptocurrencies rests solely on speculations.
  • Need for International Law: Crypto require international collaboration to prevent regulatory arbitrage.
  • RBI has recommended to the government that it should frame regulations for cryptocurrencies.
  • Regulations in place: Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), obligations under Prevention of Money Laundering Act (PMLA), 2002, Foreign Exchange Management Act (FEMA) (for overseas remittances)
Source- LiveMint

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