Following the crash of cryptocurrency terra and stablecoin terraUSD, India's central bank, the Reserve Bank of India (RBI), has issued a warning about investing in the crypto sector. Governor Shaktikanta Das said, "We have been warning about crypto and look at what has occurred to the crypto sector now."
Shaktikanta Das, the governor of RBI, spoke with a media outlet on Monday about the crypto market collapse and the governance of crypto assets.
"We've been warning against crypto, and look at what 's happened to the crypto market now," the governor stated, emphasizing that if the crypto sector had already been regulated, people would have wondered what happened to the restrictions.
Since November of last year, the crypto market has lost over $1.5 trillion, with about $500 billion lost since the beginning of this month. The decline of cryptocurrency terra and algorithmic stablecoin terraUSD aggravated the market downturn.
"This is something whose fundamental (worth) is nothing," Das remarked of cryptocurrencies. He went on to say, "There are enormous problems about how you oversee it." Our opinion remains unchanged: it will jeopardize India's monetary, financial, and macroeconomic integrity.
The governor feels that the Indian government supports the central bank's crypto stand. "We have communicated our viewpoint to the government, and they will make a thoughtful decision," the central bank governor said. "The government's statements and comments, in my opinion, are fairly consistent. They're concerned as well."
Das was also questioned about Brian Armstrong, the CEO of crypto platform Coinbase, who stated that owing to "soft pressure" from the RBI, Coinbase India halted payments via the Unified Payments Interface (UPI) days after its introduction.
The governor responded, "I would not like to comment on hypothetical conclusions made by those outsiders."
For quite some time, the Indian government has been considering cryptocurrency regulation. Officials from the Finance Ministry have been speaking with the IMF and the World Bank about cryptocurrency governance. In April, Indian Finance Minister Nirmala Sitharaman stated that a decision on cryptocurrency legislation will not be taken lightly.
Meanwhile, in India, crypto earnings are now taxed at 30%, and in July, a 1% TDS will be imposed on crypto transactions.