Finance Minister Nirmala Sitharaman announced in the Lok Sabha on Monday, that the Reserve Bank of India (RBI) had suggested creating regulations for cryptocurrencies. If such a ban must be implemented, the Indian government seeks international cooperation, said Sitharaman. "RBI has proposed drafting regulations on this sector in light of its concerns regarding the destabilising impact of cryptocurrencies on a nation's monetary and fiscal stability. The RBI believes that it should be illegal to use cryptocurrency, according to the finance minister.

Cryptocurrencies are by definition borderless and require international cooperation to prevent  "Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards," she said. Sitharaman said,

 "RBI has been cautioning users, holders and traders of Virtual Currencies  vide public notices on December 24, 2013, February 01, 2017 and December 05, 2017 that dealing in Virtual Currencies is associated with potential economic, financial, operational, legal, customer protection and security related risks. RBI had also issued a circular on April 6, 2018 prohibiting its regulated entities to deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling it.

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