Report: It Would Be Foolish For India To Ban Crypto Assets Private.

Report: It would be foolish for India to ban crypto assets private.

New Delhi, Nov 30, : .A new monograph from the Observer Research Foundation in collaboration with Esya Centre presents a deep-dive on the growth of cryptocurrency India and proposes a balanced regulatory strategy.
According to the study it would be foolish for India to ban private crypto assets when it has the potential to profit from the opportunity presented by cryptocurrency.

 Report: It Would Be Foolish For India To Ban Crypto Assets Private.-TeluguStop.com

The report contains key policy recommendations for building the ideal crypto regulatory system that would benefit India’s economy as well as ensure consumer welfare.

Over the past five years, India’s crypto asset industry has seen an exponential growth.Analysts estimate that over 15 million Indians hold digital currencies.

As with any financial asset, cryptocurrencies must be regulated to protect consumers and promote innovation.This is the key finding in Regulating Crypto Assets In India, a report jointly published by Esya Centre and Observer Research Foundation, two New Delhi-based public policy think tank.

This report is the first-of-its kind and a deep dive into the world cryptocurrency in India, which is one of the fastest-growing consumer-bases worldwide.This analysis comes as New Delhi is preparing to introduce a bill to regulate cryptocurrency.

According to the report, India is well-positioned to capitalize on the opportunities that crypto assets offer due to its growing private crypto market.It would be foolish to ban all private crypto assets.

This would cause a significant revenue loss for the government and encourage new industries to operate illegally.

Instead, the report recommends a balanced regulatory approach that addresses concerns such as fiscal stability, money laundering and investor protection while encouraging innovation.

Meghna Bal says that most of the regulatory formulae needed to address the policy concerns regarding crypto-assets such as foreign exchange management, investor protection, money laundering and tax evasion are already in financial legislation.”They only need to be adapted for the new technological paradigm.” Our report outlines how this can be done.

India’s classification of crypto as a security, good or capital asset could result in unintended restrictions on investment and regulatory gaps in key policy areas.A sui generis cryptocurrency framework that takes into account the nuances of crypto industry would be more fitting and in line with emerging global trends.

The report also offers suggestions to lawmakers on what a regulatory framework for crypto must include.

It must be technology neutral, innovative friendly, consistent, and consistent in order to fully exploit India’s potential in this field.The report states that the framework must include clear definitions, identify relevant regulatory bodies, and establish KYC/anti money laundering obligations.

Crypto asset service providers should be protected from investors’ actions by ensuring that the regulatory framework protects them.This will allow asset service providers to innovate and scale new crypto-based products.

The report suggests that the government adopt a coregulation approach, where industry associations and authorities like SEBI, RBI, and Ministry of Finance share responsibility for oversight.This approach is similar to the Japanese model where authorities have given authority to industry associations to enforce regulations.

Incentives for industry whistle-blowers could encourage crypto-market players to self-regulate.

India needs a regulatory framework that facilitates the growth of India’s crypto-economy, while also addressing any potential harms to consumers or society as a whole.

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