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Customers prone to Frauds, Private cryptocurrencies pose risk: RBI Report

The RBI Financial Stability report has claimed that the stimulation and mushrooming of Private Crypto currency has alarmed the regulators and the government to the associated risks. The RBI report has explicitly claimed that these private crypto currencies can harm the customer’s protection, escalating their risk factor.

The RBI report has also scrutinized the threats which private crypto currencies can pose against anti-money laundering and combating the financing of terrorism. Witnessing the speculative trait of crypto currencies, the customers are more prone to frauds and extreme price capriciousness.

The report further noted that according to Financial Action Task Force [FATF]12 myriad new products and services like privacy wallets, enhanced crypto currencies, decentralized platforms have garbled the transparency of the financial flows.

The RBI claimed the total market capitalization of the top 100 crypto currencies reaching a figure of $2.8 trillion and has alarmed the mushrooming of decentralized finance as crypto assets rather than as the real economy.

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