TechFlow, Sept. 10 — According to a government document reported by Jinshi Data, India tends not to establish comprehensive legislation to regulate cryptocurrencies domestically, opting instead for partial oversight due to concerns that integrating digital assets into the mainstream financial system could trigger systemic risks. The document cites views from India's central bank, stating that effectively controlling cryptocurrency risks through regulation would be extremely difficult in practice.
The document, prepared this month, indicates that regulating cryptocurrencies in India would grant them "legitimacy" and "could potentially render the sector systemically risky."
In contrast, while an outright ban could address the "concerning" risks posed by speculation-driven crypto assets, the document adds that such a measure would fail to tackle peer-to-peer transfers or transactions on decentralized exchanges.
