Sign In
Learn bits
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

More Related Current Affairs View All

10 Jan

Deciphering the Indus script

'Recently, Tamil Nadu Chief Minister M.K. Stalin announced a $1-million prize for experts or organisations in the event of their success in deciphering the scripts of the Indus Val

Read More

08 Jan

Airline pilots’ body calls attention to lithium battery fire risk

'Recently, the International Federation of Air Line Pilots’ Associations (IFALPA) issued three position papers on the fire risk due to the use of lithium-ion batteries in air

Read More

08 Jan

V. Narayanan, who is set to take over as ISRO Chairman

'V. Narayanan, a noted rocket and spacecraft propulsion expert, is set to succeed S. Somanath as the next Chairman of Indian Space Research Organisation (ISRO).' Dr. Narayanan

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps