Cryptocurrency will be subject to money fraud laws...
Reuters, citing a government notification dated march 7, 2023, reported that India's Money Laundering Law would apply to trade in cryptocurrencies. wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital asset transfers will be subject to anti-money laundering regulations. The report states that the security or administration of Virtual wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital assets and participation in financial services related to the offer and sale of Virtual wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital assets will also be included. The reserve bank of india (RBI) has warned against their use several times, even though india has not yet finalized laws and regulations regarding cryptocurrencies.
RBI is of the opinion that cryptocurrencies should be banned as they are similar to Ponzi Scheme. The indian government's move to extend money laundering rules to cryptocurrencies will give authorities more powers to monitor the transfer of these assets beyond the country's borders.
In january 2023, RBI governor Shaktikanta Das reiterated that the central bank's position on cryptocurrencies is that they should all be banned.
Speaking at the business Today banking & Economy Summit, Mr Das said, "RBI's position is very clear, it should be banned."
"What is crypto? Some call it an asset, some call it a financial product. There is no underlying in the case of crypto", said Mr Das, "anything without an underlying, the valuation of which is completely dependent on trust", nothing but 100 per cent speculation or gambling it outright."
The argument of crypto as a financial product or financial asset is completely wrong. The so-called crypto asset has the characteristics of becoming a medium of exchange and most of it is dollar-denominated.
