Over the previous five years, the Indian crypto asset business has grown at an exponential rate. Presently, more than 15 million Indians hold digital currencies. Thus, experts argue cryptocurrencies, like any other financial asset, require regulation to safeguard consumers while also encouraging innovation.
According to the Esya Centre and Observer Research Foundation’s research ‘Regulating Crypto Assets in India’. There are huge speculations for Crypto assets to constitute the foundation of future forms of the internet. The report examines the world of cryptocurrencies in India. One of the world’s fastest-growing economies, and comes as New Delhi prepares to propose legislation to govern the commodity.
Crypto-assets are not only likely to provide the foundation for future forms of the internet. But India is well-positioned to profit from this due to its burgeoning private crypto market, according to the analysis. Given this, industry experts argue that banning private crypto assets would be imprudent. Because it would result in huge income loss for the government and force emerging firms to operate illegally. Instead, the research recommends a balanced regulatory strategy that balances concerns about fiscal stability, money laundering, investor protection, and regulatory certainty with the preservation of innovation.
Most regulatory equations essential to address policy problems connected to crypto-assets, such as investor protection, foreign exchange management, money-laundering, and tax evasion, already exist in financial legislation, says one of the authors, Meghna Bal. They only need some adjustments to fit into a new technological paradigm.”
Experts in India believe that defining cryptocurrency as a security, product, or capital asset could result in unforeseen investment limits or regulatory gaps in crucial policy areas. According to the report, a unique crypto framework that incorporates the intricacies of the crypto business would be more relevant and in line with global trends.