Stakeholders including regulators have represented themselves on a panel of federal lawmakers and the Official Digital Currency Bill 2021 for Cryptocurrency and Regulation is likely to become law soon.
Adam Mazzaferro, founder of Australian decentralized platform @pay, said, “The quest that India is traveling in in terms of regulating cryptocurrencies is one that most governments have to address and implement at the right time for them.” @pay handles the token. “We believe it is also important to consider how technology can benefit the general economy and the processes that drive multiple functions along the way. Over time, we consider that these benefits and efficiencies will come.”
But there’s a big confusion crypto Assets in India as various stakeholders send multiple messages: The central bank has red-flagged the financial system’s risk from cryptocurrency, while North Block wants to ‘regulate’ the asset class in its new crypto bill instead of enforcing a complete ban. is demanding.
The global DeFi community at large is demanding clarity and clear direction in regulations.
“India’s politicians have consistently sent mixed messages, at times threatening to ban cryptocurrencies, perhaps for fear of enabling a black money market or enabling capital flight. Now one of the most innovative countries at the time. It’s time to encourage innovation in the U.S. to attract high-quality projects to the world and space to advance technology as opposed to taking them underground or abroad in areas like Dubai,” said Toby Gilbert, CEO and cofounder Coinweb, which operates out of London, Kiev and Bangkok, said. ,
Harishkartik Gunalan, CEO of Singapore-based Coinfantasy, said that the blockchain and crypto industry as a whole is an interplay between technology and mathematics, two areas in which Indians are traditionally very good, and therefore it is natural for Indians to be attracted to it.
“This fascination is manifested in such a large number of people trading digital assets from India and also in the fact that, without any regulatory backing, India has had two crypto-focused unicorns in the past 8 months. A supportive regulatory framework Will only enable many more who are looking from the sidelines as this generation-after-generation new asset class emerges,” he said.
Global industry experts believe that Indian regulators while legislating around crypto assets should keep in mind that cryptocurrencies are an integral part of the entire blockchain ecosystem.
“India is one of the fastest growing economies in the world and is a significant frontier for the penetration of decentralized blockchain technology. Cryptocurrencies, in turn, are an essential component, without which it becomes difficult to encourage a decentralized component of the technology, And do you have a centralized ledger, which defeats the purpose of the commodity and severely limits funding for innovation,” Gilbert said.
The CEO and co-founder of Singapore-based Cake DeFi, Dr. Experts such as Julian Hosp say that it is not possible to ban cryptocurrencies completely in the rapidly growing DeFi ecosystem.
“It is important to note that cryptocurrency as a whole exists on the blockchain. There is no single entity controlling it; it is part of its decentralized nature. While the Indian government may impose restrictions on crypto trading, exchanges that facilitate While those trades, or even being able to use cryptocurrencies as payment methods, a broad ban on cryptocurrencies is not possible right now,” Hosp said. “Also, you have decentralized exchanges (DEXs), such as DeFiChain’s DEXs, which will not fall under the purview of any government or singular entity because they are run by a distributed community of developers and enthusiasts.”
Regulators and the crypto industry around the world are eagerly awaiting the crypto bill to set rules for digital coins, tokens and virtual currencies, while most other governments are also struggling to formulate crypto regulations.
In the US, Maxine Waters, Chair of the House Committee on Financial Services, recently met with several CEOs of major crypto firms to discuss the future of digital assets and finance. In South Korea, lawmakers postponed a 20% crypto tax until 2023, citing loopholes in collecting tax information.
In Russia, cryptocurrency and some related activities are partially regulated, but many important areas such as crypto mining, taxation, and the use of digital coins for payments and crypto trading have been left out, leading to regulatory confusion. Is. Germany brought in a regulatory regime for crypto assets last year, but still has to reform the relevant civil law system. A licensing framework for crypto issuers and service providers is still in the works.