RBI Again Warns Of Perils Of Bitcoins, Crowd-funding

By Religare
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Reserve Bank deputy governor R Gandhi said finance sector watchdogs are closely watching emerging instruments like Bitcoins and crowd-funding, as they are seeking to operate in a "regulatory free" environment, reported PTI.

    RBI Again Warns Of Perils Of Bitcoins, Crowd-funding
    "For one thing, they both hope to operate in a regulatory free environment...(but) unregulated financial systems have immense scope of depriving the public of their hard-earned money and therefore highly risky...," he warned.
     

    Read what are bitcoins

    "We need to carefully monitor and be vigilant," he said, referring to digital money and crowd-funding.

    He added that crypto currencies have been "widely suspected to have financed" criminal activities.

    "These innovative developments, which have the potential to be disruptive, may not be so desirable or may be of questionable relevance," Gandhi added.

    Later, he told reporters on the sidelines of the bankers summit Fibac here that capital markets regulator Sebi has already come out with a discussion paper on crowd funding and the issue may also be discussed in the Financial Stability and Development Council, a forum of financial sector regulators.

    On Bitcoins, he said the RBI has already cautioned the public and continues to monitor the space.

    To a question on the progress of the announcement of the domestically systemically important banks, Gandhi said it will be announced in two or three days, before the August-end deadline.

    After the release of the small finance banks licences next month, the RBI is planning to come out with norms for "on-tap" licensing of banks, he said, adding the central bank may also look at other kinds of banks beyond in the differentiated banking space later.

    Read more about: rbi bitcoins
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more