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Central bank to regulate crypto exchange

The Reserve Bank of India (RBI), which is the central authority overseeing banking in India, has set up its own fintech division to help develop regulations for cryptocurrencies and their future Central Bank Digital Currency (CBDC), Coindesk reports.

The report also states that banks are working on two types of CBDCs (wholesale and retail), and the new department are tasked with overseeing their development. This division is currently headed by Ajay Kumar Choudhary, RBI’s Chief General Manager.

RBI’s past with cryptocurrency

Of course, the department is supposed to oversee the “New Age Challenge” that arises from fintech applications, and crypto is only part of that job. That is, the department oversees cryptocurrencies and their challenges, but not necessarily the first agenda.

The RBI, especially its governor Shaktikanta Das, is one of the voice opponents of the Indian cryptocurrency. he has issued several warnings about the use of cryptocurrencies in the country, raising concerns about the increased wealth invested in crypto trading in India.

An accurate estimate of the total number of Indian crypto traders and users is not readily available, but claims that the country’s largest crypto exchange has millions of users.

Nischal Shetty, the founder of WazirX, considered the country’s largest cryptocurrency exchange in terms of trading volume, claims that there were a total of 20 million crypto users in the country in the fourth quarter of CY2021.

Where does India’s crypto legislation stand?

India has also enacted legislation regulating cryptocurrencies for almost a year. The bill in question was the first agenda item for the January 2021 Parliamentary Budget Meeting, but was not submitted at the next meeting.

The RBI’s move could be good news for the industry, which has been demanding crypto regulations for some time.

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