Regulation
India is rethinking its cryptocurrency policy!
7.30pm ▪ 3 minute read ▪ by Fenelon L.
India is about to take a decisive step in regulating cryptocurrencies. In fact, the government is planning to publish a discussion paper detailing its stance on digital assets by September. This move marks an important step towards creating a regulatory framework in a country where uncertainty has long reigned.
A Collaborative Approach to Shape the Future of Cryptocurrencies
Economic Affairs Secretary Ajay Seth announced that this document will outline the major issues related to cryptocurrencies and seek stakeholder views. This approach aims to create a broad consensus rather than hastily impose legislation.
An inter-ministerial group, comprising representatives of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), is swerving 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 therefore lead to a balanced policy, which takes into account financial security concerns while promoting innovation in the digital assets sector.
Towards a regulation adapted to the Indian context
Currently, India does not have a comprehensive cryptocurrency regulation. The existing framework is mainly focused on anti-money laundering and compliance with electronic transfer standards.
The discussion paper will explore the need for additional regulatory measures. India, leveraging its G20 presidency, draws on global perspectives to develop rules based on international consensus.
Benefiting from a growing adoption of cryptocurrencies, India could emerge as a pioneer in regulating them on a global scale. By learning from jurisdictions like Hong Kong, Dubai, and Singapore, the country could harness the economic potential of this burgeoning industry while minimizing risks.
In short, the publication of this discussion paper will mark a turning point for the future of cryptocurrencies in India. It will provide greater visibility to investors and entrepreneurs, while paving the way for a balanced regulatory framework.
Maximize your Cointribune experience with our Read to Earn program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning rewards.
Click here to join “Read to Earn” and turn your passion for cryptocurrencies into rewards!
Fenelon L.
Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make it possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.