India establishes crypto research unit, according to some of the local online reports. The development also appears at a time when the central bank of India stated that it is necessary to regulate the industry during a Supreme Court hearing earlier this July.
27 August, AtoZ Markets – The Reserve Bank of India (RBI) has reportedly set up a new internal unit that is focused on research and regulation of the new emerging technologies. These technologies include Blockchain, cryptocurrency, and artificial intelligence (AI).
India Establishes Crypto research Unit
While many news outlets have reported this news, the official announcement from the central bank of India is yet to appear. According to a number of online reports, RBI has discreetly moved to form a new unit to explore and oversee innovative technologies via draft guidelines in the future.
The unit has been already operating for about a month, as it is being led by one of the general managers at the RBI, state the reports. The local media outlets cite two sources that are familiar with internal developments at the central bank.
One of the sources has been quoted as saying:
“As a regulator, the RBI also has to explore new emerging areas to check what can be adopted and what cannot. A central bank has to be on top to create regulations. This new unit is on an experimental basis and will evolve as time passes.”
India Supreme Court Crypto Regulation
The development also appears at a time when the central bank of India stated that it is necessary to regulate the industry during a Supreme Court hearing earlier this July. Notably, the RBI has been quite cautious before in regards to statements about Bitcoin and cryptocurrencies.
The senior advocate of the RBI, Shyam Divan has stated that a board led by Chief Justice Dipak Misra claimed that it is vital to regulate Bitcoin and other cryptocurrencies. The officials have stated that these “particular means” will “encourage illegal transactions.” Mr. Divan has also highlighted that the issue has “immense policy dimensions.” He has stated that crypto has the potential to influence global money flows.
Furthermore, the senior advocate has explained that an interdisciplinary committee that is led by the secretary of economic affairs, Subhas Garg, has been established back in 2017. The committee is designed to develop the regulatory framework for cryptocurrencies. As of the moment, the authorities are looking into the issue. The RBI has set up a three-week deadline for the response to multiple petitions regarding regulations.
RBI Crypto Ban
Earlier this April, Indian central bank has issued a circular that has been addressed to all the regulated financial institutions in the country. The circular has banned the firms from transacting or providing services to companies that are associated with cryptocurrencies.
The impact of this decision has had a negative effect on local cryptocurrency trading levels and has also pushed some of the cryptocurrency exchanges to take matters to the Supreme Court.
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