After India, US regulators to mull over crypto risks in 2022
25-November-2021
The banking regulators in the US have announced a plan to clarify the
rules and regulations around how banks can use cryptocurrencies over the
next year, at a time when governments the world over, including India,
are weighing the risks associated with cryptocurrencies and safeguard
investors.
The Board of Governors of the Federal Reserve System,
Federal Deposit Insurance Corporation and Office of the Comptroller of
the Currency said in a statement that they recognise that the emerging
crypto-asset sector presents potential opportunities and risks for
banking organisations, their customers and the overall financial system.
"As
supervised institutions seek to engage in crypto-asset-related
activities, it is important that the agencies provide coordinated and
timely clarity where appropriate to promote safety and soundness,
consumer protection, and compliance with applicable laws and
regulations, including anti-money laundering and illicit finance
statutes and rules," the regulators said in a joint statement on
Wednesday.
Throughout 2022, the US agencies plan to provide greater clarity on whether certain activities related to crypto-assets conducted by banking organisations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations.
The agencies said that they continue to monitor developments in crypto-assets and may address other issues as the market evolves.
Further, the agencies will continue to engage and collaborate with other relevant authorities, as appropriate, on issues arising from activities involving crypto-assets.
In India, the upcoming Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to prohibit all private cryptocurrencies in India.
It, however, allows for certain exceptions to promote the underlying technology of cryptocurrency and its usage.
With the Indian government seeking to ban all private cryptocurrencies in the Crypto Bill 2021, experts and leading industry players have said that provisions relating to "banning" private cryptocurrencies would have to be looked at very carefully.
Several high-profile meetings have been held to discuss the regulation of cryptocurrencies in recent days. The Parliamentary Standing Committee had also called for the regulation on cryptocurrencies and its ecosystem.
Prime Minister Narendra Modi had earlier said that all democratic countries need to work together on cryptocurrency and ensure that it does not end up in the wrong hands.
Giving an example of the virtual currency, he had said: "Take cryptocurrency or Bitcoin for example. It is important that all nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth."- IANS
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