Indian Minister of State for Finance and Corporate Affairs in a recent interview said that the Indian government is open to crypto regulations and is considering the various aspects of the nascent field to frame the laws around cryptocurrencies. During the interview, Thakur also highlighted that due to elections in five states the last parliamentary session was cut short due to which the much-anticipated cryptocurrency bill could not be discussed even after being listed.
Thakur assured that the upcoming regulations would be developed based on a broad input including the report from the inter-ministerial committee as well as the Supreme court verdict overruling RBI’s banking ban.
What is the government’s view on #cryptocurrency ?
— Office of Mr. Anurag Thakur (@Anurag_Office) April 11, 2021
Thakur while answering a question about the growing cryptocurrency market pointed towards the price volatility of Bitcoin and to some extent oversimplified to put his case forward suggesting the government’s priority would be investors protection. He said,
“Let say bitcoin was $2,000 few months back and today it is $60,000, so we must consider whether this high price volatility would pose a risk for investors. Further details around the bill would be discussed in the parliament,…. however I can assure you our government is pro-technology and we will ensure to incorporate it.”
Favorable Crypto Regulations Could Put India on Crypto Map
The Indian crypto ecosystem is one of the fastest-growing ones with the likes of WazirX and CoinDCX seeing a massive surge in customer registration and trading volume post overruling of the banking ban. Despite the growing FUD of a possible blanket ban the trading volume on Indian exchanges has registered new highs ranging in billions.
Crypto companies have also started putting out their advertisement during the ongoing Indian Cricket Premier League, a cricket tournament watched by billions across the world. The Indian crypto ecosystem is not just fighting for better regulations but at the same time trying to educate more people about cryptocurrencies with numerous exchanges running various education campaigns.
Another positive approach has been taken by prominent entrepreneurs and investors including Infosys chairman Nandan Nilekani who suggested that the diverse set of crypto investors could bring in much necessary capital to close the growing funding gap in the Indian small and medium-sized enterprises (SMEs).
India could take a cur from the US who also started quite cautiously but over time the regulations have evolved to generate many crypto unicorns like Coinbase. India has the potential and the resources to produce many such crypto unicorns.