The Reserve Bank of India (RBI) has released a financial stability report, in which it recommends an international framework for regulating crypto assets.
The report states that the volatility and structural vulnerabilities of these assets, as well as their increasing interconnection with traditional financial systems, have caused turmoil in the crypto market.
The RBI suggests that regulatory approaches should be consistent across borders and follow the principle of “same activity, same risk, same regulation”.
The report also recommends that authorities should be equipped with the necessary powers and resources to regulate, supervise, and oversee crypto assets and markets, both domestically and internationally, in proportion to the financial stability risks they pose.
Additionally, the report highlights the need for comprehensive governance and risk management frameworks to address financial stability risks arising from interconnectedness.