New Delhi, 2nd January: Noting the turmoil in the cryptocurrency market, the Reserve Bank of India (RBI) has proposed a framework for international regulation of such cryptocurrency activities.
In its Financial Stability Report released on December 29, 2022, the central bank said, “Crypto-asset market turmoil has led to intrinsic volatility and increased interconnectedness with the traditional financial system. It highlights a structural vulnerability,” he said.
Central banks have signaled the need for consistency in their regulatory and supervisory approaches at the international level.
These regulatory approaches should be based on the principle of a “same activity, same risk, same regulation” approach.
This framework should ensure that authorities have the appropriate powers, tools and resources to regulate, supervise and monitor crypto-asset activities and markets nationally and internationally, proportionate to the financial stability risks they pose. I’m proposing.
In addition to this, the RBI report further suggests the need to prepare a comprehensive governance and effective risk management framework to address financial stability risks arising from interconnectedness.