The Reserve Bank of India (RBI) has created a new department to identify challenges and opportunities in financial technology, particularly around cryptocurrency. The new fintech department has been operational since Jan. 4, the central bank said.
Indian tax authorities are already going after cryptocurrency exchanges for alleged tax evasion, despite a lack of clarity on crypto taxation, while stakeholders have also been raising concerns about the lack of regulations for the country’s crypto industry for more than a year.
The department could be active on the cryptocurrency front, in terms of framing regulations—the central bank has recently voiced its stance on virtual tokens. The RBI will provide a framework for further research on financial technology that could aid policy interventions, according to a memo circulated last week.