India: Why regulations might have to wait until a formal ‘understanding’ of crypto

0
7

Over the past few days, India has maintained a spotlight on the crypto-market. In fact, the government also concluded its first stakeholders meeting yesterday with more regulatory clarity expected in the coming days. During the meeting, there was a ‘consensus‘ that “cryptocurrency can’t be stopped, but it must be regulated.”

Jayant Sinha, Chair of the Parliamentary Standing Committee on “CryptoFinance.” commented in a recent interview with CNBC TV18 that a “regulatory framework is in consideration.”

However, it is worth noting that sources had pointed out that industry associations and stakeholders are currently “not clear as to who should be the regulator.”

First stakeholders meeting

In the context of the meeting, Jayant Sinha explained that the committee is yet to take a view on the matter as,

“…the committee wanted to understand what was happening in the industry, the industry has attracted significant attention.”

However, he personally believes,

“It is very important to balance innovation and regulation.”

In this regard, SC Garg, Former Finance Secretary, holds a somewhat contrary view. In the past, he has commented,

“Whenever you talk about regulating something, we need to figure out what are we regulating.”

Decoding crypto

Garg explained that cryptos are not something “which we have really figured out.” He added,

“You can’t bring a separate law for only the crypto exchanges and not for the crypto as the asset or the product.”

While Sinha agreed…

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here