Regulation
India rethinks its cryptocurrency policy!
Thu Jul 25, 2024 ▪ 3 min read ▪ by Fenelon L.
India is set to take a major step in regulating cryptocurrencies, with the government planning to release a discussion paper detailing its position on digital assets by September. The move marks a significant step towards establishing a regulatory framework in a country that has long been plagued by uncertainty.
A collaborative approach to shaping the future of cryptography
Economic Affairs Secretary Ajay Seth announced that the paper will outline key issues related to cryptocurrencies and seek stakeholder input. This approach aims to build broad consensus rather than impose hasty legislation.
An inter-ministerial group, comprising representatives from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), is leading the development of this policy. On the one hand, the RBI expresses reservations about the legitimacy of cryptocurrencies, fearing for macroeconomic stability. On the other hand, SEBI is more open to regulation supervised by multiple authorities.
This collaborative approach could thus lead to a balanced policy, taking into account financial security concerns while promoting innovation in the digital asset sector.
Towards regulation adapted to the Indian context
India currently does not have comprehensive regulation on cryptocurrencies. The existing framework is mainly focused on anti-money laundering and compliance with electronic transfer norms.
The discussion paper will examine the need for additional regulatory measures. India, leveraging its G20 presidency, is drawing on global perspectives to develop rules based on international consensus.
Benefiting from a increasing adoption When it comes to cryptocurrencies, India could become a global regulatory pioneer. By taking a page from jurisdictions such as Hong Kong, Dubai and Singapore, the country could harness the economic potential of this thriving industry while minimising the risks.
In summary, the release of this discussion paper will mark a watershed moment for the future of crypto in India. It will provide greater visibility to investors and entrepreneurs while paving the way for a balanced regulatory framework.
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Fenelon L.
Passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptos and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I strongly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.