The regulator and Financial bodies worldwide have now turned cautious after experiencing the immense crypto crash and losing a lot of money. The Indian Government by making a negative stance on crypto says that It warned well in advance about the cryptocurrency, which is now facing an impulsive crash.
The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, also expressed a negative opinion on Monday about virtual currencies. RBI had always raised a concern about cryptos undermining the monetary, financial, and macroeconomic stability of India.
The Governor of RBI said that the investors were warned well in advance about the volatility of the crypto market, and those who don’t care about the warning have lost money now.
Further, The Governor had also given a hint about the interest rate hikes in the future monetary policy meeting of June. quoting
“We have been cautioning against crypto and look at what has happened to the crypto market now. Had we been regulating it already, then people would have raised questions about what happened to regulations.”
The Government of India and RBI believes that regulating cryptocurrency is a difficult task as it holds no underlying value. Nirmala Sitaraman, Indian Finance mInister has also recently made a strong case for regulating cryptocurrencies at a global level to reduce the risks such as money laundering and terror financing.
“We have conveyed our position to the government and they will take a considered call. I think the utterances and statements coming out from the government are more or less in sync.”
In addition to this T.Rabi Shankar had also attacked crypto by making a statement of crypto ban in India, saying that it is worse than Ponzi Schemes. But RBI has not imposed any shadowban on crypto exchnages yet.
Further, the U.S SEC Chair Gary Gensler expects more crypto turmoil to undermine the confidence in traditional markets. The European Central Bank President has also given his words on crypto and mentions it needs more regulatory oversight.