Next financial crisis to come from cryptos: India's central bank head

Bu Ovunc Kutlu

ISTANBUL (AA) - The next financial crisis will come from cryptocurrencies, the governor of the Reserve Bank of India warned Wednesday.

"After FTX episode, don’t think we need to say anything more on crypto," Shaktikanta Das said during a speech at the Business Standard BFSI Insight Summit in Mumbai, according to Indian Express, an English-language newspaper.

Das said he still advocates that cryptocurrencies should be banned, arguing that cryptos have no underlying value, while they pose risks for macroeconomic and financial stability.

The sudden collapse of FTX, once the world's third-largest cryptocurrency exchange by daily trading volume, left users and investors in the dark and caused a meltdown in the cryptocurrency market last month.

FTX filed for Chapter 11 bankruptcy, while its former CEO Sam Bankman-Fried was charged last week with defrauding investors by the US Securities and Exchange Commission.

With the FTX's implosion raising the perceived risks for investors last month, the crypto market lost more than 20% in value in two days amid the company's meltdown.