Budget 2023: Expect some tighter regulations for the crypto sector, experts say

moneycontrol.com:

Following continuous warnings by the Reserve Bank of India (RBI) on risks associated with cryptocurrencies, industry experts are expecting that the government will introduce additional measures in the Union Budget.

They are of the opinion that RBI’s stance on cryptocurrencies has been one of caution, considering the nature of this digital asset. As a result, experts said they expect some tightening measures to be introduced in the Union Budget.

Srinath Sridharan, a financial expert and visiting fellow at the Observer Research Foundation, in a report, explained: “From a regulatory perspective, crypto assets are currently seen with suspicion about their intent of existence, as well as being observed as overtly speculative assets, without any underlying value to it.”

More regulations?

RBI has, time and again, highlighted that crypto, if legalised, could lead to massive financial problems.

On January 13, RBI Governor Shaktikanta Das said that crypto is poor gambling and can undermine the power of the central bank if allowed to grow unchecked.

“If crypto is allowed in India, RBI will lose control over monitoring transactions. Crypto, masquerading as a financial asset, is a completely misplaced argument," said Das speaking at an event in Mumbai.

Also read: RBI Governor Shaktikanta Das: Crypto is poor gambling; shouldn't be allowed to grow

In addition to this, RBI has been proactive in keeping a check on crypto exchanges which have been active in either direct or indirect involvement with money laundering activities.

Echoing this sentiment, Chandan Sinha, former executive director of RBI, highlighted that one may expect some measures but not large ones.

“Concerning the risks associated with issues like money laundering and other