India plans to regulate Bitcoin

The Deputy Governor of the Reserve Bank of India (RBI), SS Mundra has called for regulating Bitcoin in India in order to prevent money laundering activities and financing of terrorism. The first statement regarding this matter was submitted by the current governor of the RBI, Raghuram Rajan.

This point of view was submitted during the 2015 Financial Institution Benchmarking Calibration (FIBAC) conference, which took place in Mumbai. Mundra said the following:

“It is near impossible to regulate the behavior and choices of individuals…hence, it will be more practical for the regulatory authorities to push for bringing in appropriate regulatory changes in their jurisdiction which would enable regulation of the aggregators’ electronic dealing platform”.

He added the following:

“There are converns around orderly growth of the system, consumer protection and grievance redressal, disaster recovery and business stability plans for the intermediating electronic platforms”.

The abovementioned means that the Reserve Bank of India is planning ways to monitor the Bitcoin ecosystem. In this context, Rajam mentioned that it is only carefully wathching it and does not with to interfere right now because the cryptocurrency market in India is small. Mundra also stated that the “grey zone” areas of digital currencies shall be identified.

In addition, he stated that there is a need of develpment of the Financial Stability and Development Council and the State Level Coordination commitees in order to prevent abuses by vested interests.

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