India resists comprehensive cryptocurrency framework, fears systemic risks

Huobi HTX reported that a government document showed that India tends to not enact comprehensive legislation to regulate domestic cryptocurrencies, but chooses to maintain some supervision because of concerns that incorporating digital assets into the mainstream financial system may cause systemic risks. The document quoted the Bank of India's view, saying that it would be difficult to actually control the risk of cryptocurrencies through regulation. Documents prepared by the government this month state that regulation of cryptocurrencies in India will give it "legality" and "can cause systemic risks to the industry." By contrast, while a complete ban can deal with the “worrying” risks posed by speculative crypto assets, the document adds that this approach cannot cope with peer-to-peer transfers or transactions on decentralized exchanges.