IMF says because of crypto India may face financial stability risk

The IMF mission chief of India shared his stance on the increasing adoption of crypto assets in India and claimed that it may pose a big risk to the financial stability of India.

In India crypto is still under a gray region where people are allowed to trade and also forced to pay a 30% tax on income generated from the crypto investment but there is no crypto regulation framework. However, the stance of the Indian government is not clear on crypto adoption but Indian citizens are clear to adopt crypto and blockchain innovation. 

Nada Choueiri, chief of the IMF mission for India, talked about his opinion on the crypto and blockchain industry to the local news media. 

Nada said that cryptocurrencies are highly risky under the lack of regulatory framework. Under the unregulated system, cryptocurrencies pose risk to many types of challenges like fraud and cyberattacks. 

“Unless effective regulatory measures are implemented, the crypto-assets ecosystem could face serious consumer protection challenges such as fraud and cyberattacks.”

In this way, Nada explained that under an unregulated system, crypto poses risk to the financial stability of India. 

Crypto bill of India 

A few months ago, the crypto bill of India was under huge discussion among the crypto Community of India and also among the government officials but later reports noted that many things in the bill were pending and huge development needed for the same. 

Reportedly, the Finance Ministry of India is in talks about the creation of a regulatory framework for the crypto Industry under the suggestions and guidelines of IMF, World Bank, Reserve Bank of India, and the Securities and Exchange Board of India. 

Recently Priyanka Chaturvedi, a parliament member from  Shiv Sena political party raised her voice against the unfair stances of the Indian government on crypto.  Priyanka said that India imposed tax provisions but not crypto regulatory framework and in this way, India is degrading innovation, which is possible with crypto, blockchain & Web3. 

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