US financial authorities to crackdown on, regulate $1.5 trillion cryptocurrency market

The United States Financial authorities are planning to regulate the $1.5 trillion cryptocurrency market amid growing concerns of a lack of oversight. Earlier, during the Trump era, individuals were encouraged to use cryptocurrency within the financial system. However, that is expected to change now as the Biden administration is taking a different approach towards the use of cryptocurrency in the US. 

US plans to regulate the crypto market 

This move comes after the appointment of Michael Hsu who was appointed as the acting U.S. Comptroller of the Currency earlier in May. Following his appointment, Hsu expressed that he wants the United States officials to work together in order to ensure that a regulatory perimeter is set for the massive cryptocurrency market.  Citing the 2008 financial crisis, Hsu stated that it feels like a déjà vu as fintech creates new payment processing tools. According to Hsu, the new payment techniques give rise an unregulated and shadow banking system. 

RBI's take on cryptocurrency in India 

Meanwhile, in terms of India, the RBI on Monday had clarified that banks cannot stop people from investing in cryptocurrency. Issuing a clarification, the RBI stated that its 2018 circular no longer stands. This comes after multiple private and public banks sent their customers letters against the trading of virtual currencies. These banks cited the RBI's 2018 circular in order to caution their customers against investing in the cryptocurrency market. 

Banks like HDFC and SBI has sent mails to customers asking them to refrain from investing in crypto. In addition, the customers were also warned that their banking services will be curtailed. According to the emails, the authorities inquired about the customers’ transactions involving digital currencies including Bitcoin. The HDFC and SBI had cited to RBI's 2018 circular. However, it was later struck down by the Supreme Court of India. 

With agency inputs