Experts Stressing that India needs smart and sensible crypto regulation
Stressing that India needs smart and sensible crypto regulation, leading cryptocurrency players in the country on Friday urged the government against the ban. Instead, it sought engagement to build consensus on crypto regulation.
The government earlier indicated that it would take a ‘calibrated approach’ towards digital assets and formulate a Bill on cryptocurrencies. However, a final decision will be taken at a later date.
The IAMAI (Internet and Mobile Association of India) and BACC (Blockchain and Crypto Assets Council ) members put it up at a webinar. The stakeholders said that consultation and dissemination of information between the government and the industry participants are crucial to determining the most appropriate regulatory framework and supporting innovation.
“There are over 1.5 crore Indians holding over Rs 1,500 crore worth crypto-assets. India is no longer a niche market but a rapidly growing financial market. However, despite the growth in crypto adoption, India is behind in terms of both regulations as well as several successful crypto startups,” said Nischal Shetty, CEO WazirX.
“India needs its crypto unicorns and better regulations, and for this, we must encourage our entrepreneurs to build for crypto,” he added.
Framing an appropriate regulatory framework for cryptocurrencies and crypto-assets continues to be a challenge, with countries taking differing approaches to find a solution.
In this regard, the experts said that it would be helpful to consider other jurisdictions such as Singapore that have taken a balanced approach with regulations aimed at preventing nefarious activity without impending technology innovation.
“India and Singapore are both emerging as fintech hubs, and we hope that regulation in India will catch up soon with global best practices,” said Vivek Kathpalia. He is the Head of Singapore Office and Leader, Technology Law at Nishith Desai Associates.
Sriram Chakravarthi, Counsel, Rajah & Tann Singapore LLP stressed the need for collaborative effort amongst regulators and industry. He stated that governments should collaborate with the crypto-industry and representative bodies to create a practical regulatory framework. In addition, they also need to consider international approaches particularly on the cross-border aspects of crypto-regulation.