July 3, 2022

Great Indian Mutiny

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A smart cryptocurrency policy will keep India’s technological dominance at the top

There is no denying that the Government of India shares a controversial relationship with cryptocurrencies, which was made clear when it was recently pointed out that the government is planning. Ban all private cryptocurrencies – A list that includes almost all digital assets on the market today – previously removed all of those restrictions in 2019.

In detail, when the government reconvenes its winter session, To talk Bill of Cryptocurrencies and Regulation of the Official Digital Currency 2021, as its name implies, Seeks to create a legislative framework All private cryptocurrencies may be banned.

There is still a lot of confusion about what a private crypto is, with some speculating that it may refer to security-centric tokens such as Monero.XMR) o ZCash (ZEC) On the other hand, Naimish Sangvi, founder of the cryptocurrency news website Coin Crunch India, believes that the Indian government’s definition of private property can be expanded to include all cryptocurrencies in the market. Announces:

“In the 2019 Economic Affairs Department report on cryptocurrencies, they stated that anything without sovereignty would be referred to as private cryptocurrency. And by that logic, that means bitcoin and ethereal would fall under that definition.”

Lots of blurred lines

Nischal Shetty, CEO of WazirX, the Indian cryptocurrency exchange, said it was difficult for Cointelegraph to understand what private cryptocurrencies are, especially key assets such as Bitcoin (BTCy Ether (ETH) Basically public cryptocurrencies are built on top of transparent blockchain infrastructure – each project offers its own specific application events.

Shetty further stressed that people cannot use Indian Rupees or Tethers (USDT) Pay in Bitcoin or Ether Blockchains. Instead, they need crypto to use distributed applications (DApps) and generate non-fungal tokens (NFTs). Said:

“Although the interpretation of the bill appears to be the same as it was in January 2021, several significant events have taken place since January. First, the Standing Parliamentary Committee called for public consultation and then our own Prime Minister came forward to call for cryptocurrency regulations in India.”

Sumit Gupta Cointelegraph, CEO of CoinDCX, a cryptocurrency trading platform, has no official label for private cryptocurrency anywhere else in the world, so now, the public is eagerly awaiting the Government of India’s definition of private property.

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In addition, he noted that since all the details of the bill are not yet available, it is better not to guess what it will be. One thing that is clear, however, is that the government recognizes the transformative potential of blockchain and pays more attention to its various applications and applications in our daily lives. Gupta noted:

“A complete ban is not possible because it will challenge India’s ability to use blockchain technology to transform our businesses, cryptocurrencies are a powerful trend in shaping economies around the world, and we hope that our policymakers will create the rules that will allow our economy to reap all the benefits that the global cryptocurrency industry has to offer. “

Hang a blanket on the horizon?

When asked about the possibility of the total ban growing its ugly head again, Shetty said it would be good to know more about the bill. He acknowledged that he was optimistic about India’s overall outlook on cryptocurrencies, citing recent comments by Finance Minister Nirmala Sedaraman that India could only “try to regulate its digital assets”. Instead of disabling all innovation without hope That emerges from him.

Shetty referred to the Comprehensive Financial Action Task Force (FATF) guidelines. They proposed At this year’s G20 summit, it said cryptocurrencies were not a threat to any country’s local economy:

“A blanket ban will also lead to an increase in OTC markets, counterfeit transactions and brain drain from India. The cryptocurrency industry today employs 50,000 people directly / indirectly and generates millions of tax revenues to the government. Something that is harmful to the environment. “

Similarly, Gupta is keen to welcome any bill as policymakers are beginning to recognize the importance of this new asset class and the growing appetite of retail and institutional investors in India. “While we are not going to speculate on all the details of the bill, we hope that the government will act to better position our economy for inclusive growth,” he added.

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In his opinion, it would be best to maintain a balanced approach between innovation and regulation, in which the government clearly establishes specific parameters critical to cryptocurrency transactions without constraining the efficiency of the technology.

Regulation instead of total ban

Reports Recent local Indian media have reported that a total ban will not be in place. Instead, the government can design a well-designed administrative structure on how to manage digital assets in the region.

NDTV reports that it was able to obtain a “cabinet note” on the cryptocurrency bill. According to the document, there are only recommendations to restrict cryptocurrencies as assets overseen by the Securities and Exchange Board of India (SEBI) instead of banning them altogether. In addition, the note states that there will be a specific time for investors to declare their cryptocurrency holdings and store them on SEBI-regulated sites.

Finally, the document states that upcoming crypto laws will not allow any digital property to be recognized as a legal tender. However, at some point the government may consider creating its own central bank digital currency.

Policy Development and the Digital Domain of India

As things stand, India has a vibrant technology and innovation sector The world’s third largest startup ecosystem. In this regard, Gupta pointed out that investor confidence in the country has not stopped growing in recent times and that Indian cryptocurrency companies have accumulated investments of over $ 500 million in 2021 alone.

Furthermore, foreign direct investment in this sector is projected to grow to more than $ 25,000 million by 2025 and to exceed $ 200,000 million by 2030. He further said in this regard:

“The Singapore Cryptocurrency Exchange Coinstore recently entered the Indian market amid regulatory uncertainty, indicating India’s strength as a crypto hub that will continue to attract international businesses. Will limit advances.

India has historically been known as a technology hub and by embracing the future of finance, you can improve your economic and technological position as a world power. So it will be interesting to see how the country finally moves forward and decides to regulate its growing digital asset market.

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