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- Ripple Executive says “India with lack of clarity in crypto regulation is ‘crippling’ technological innovation.
- Regulators should push more digital payments – approach that Prime Minister Narendra Modi has been focusing on.
- India’s Finance Ministry has reportedly moved a policy note, pushing for a ban on cryptocurrency within the nation.
Lack of Clarity in Crypto Regulations in India is Crippling Innovation
Chief Executive Officer of Alphabet, Sundar Pichai believes “India will be a global player in the digital economy”. And India’s prime minister, Narendra Modi has also been pushing harder for more digital payments within the country.
However, despite the Apex Court of India overturned the crypto banking ban in early March this year, the country has had a strict view on cryptocurrency operations in India.
That being said, the country’s crypto players have been eagerly waiting for clarity in crypto regulations. In similar regard, Ripple’s top executives recently appeared in an interview with the Forecast news and discussed cryptocurrency regulations in India.
India should come out of this Fog – Ripple’s Navin Gupta
India’s stance about cryptocurrency is still in a ‘gray zone’. According to managing director of South Asia and EMEA at Ripple, Navin Gupta, India is crippling the innovation without supporting new technologies in India.
However, the company’s head of government and regulatory affairs for the Asia Pacific, Sagar Sarbhai says that in the wake of rumors around, the Indian government might push for an “outright crypto ban” once parliament reconvenes.
Meanwhile, Mr.Gupta continued that India needs to look at three aspects;
- Govt should give clear picture of who is the regulator of digital assets in India – whether it is SEBI, RBI or the Ministry of Finance
- The narrative of ‘Blockchain good, digital assets bad’ needs to be looked together, blockchain without digital assets is just a database which may or may India is looking for.
- We need to give clear signal to foreign investors
So if there are investors who are coming into India expecting that there is no law against trading cryptocurrencies or digital assets, then we owe it to these investors to give them a clear guideline of whether you can do this or not,” continued Gupta.
Blockchain Good, Crypto Bad
Mr. Sarbhai also said that instead of saying ‘blockchain good, crypto bad,’ Government should look at the brighter picture of digital assets and use-cases of cryptocurrencies.
“India is under-living its potential, [by] not enabling these new technologies to come in to solve decades-old problems,” said, Navin Gupta
Ripple has been looking at the Indian market aggressively. In fact, in Mid June, the firm had issued a whitepaper, proposing a legal framework for digital assets in India.
It’s essential to note that Ripple had published whitepaper after the Indian media revealed that the finance minister has moved a policy note for inter-ministerial consultations on introducing a law to ban cryptocurrencies.
Similarly, in a recent interview, Gupta notes that the lack of clarity in crypto regulations means a blockage for foreign investors. He says that ‘India should come out of this Fog’ and cover clear guidance for International companies as they are entering India. Mr.Gupta says “India should guide these investors and essentially say; “
“Hey, you know what? This is a lead regulator. This is how the consultation process would work, and this is when and how we are going to make a decision.”
Government Should Consult with Stakeholders
While the potential crypto and tech players eying on India, the country’s parliament is scheduled to resume the session later in July. Following this, we may expect a date for a debate on regularity on cryptocurrency and digital assets in India.
“We can create a balance between innovation and risk to encourage more entrepreneurs and innovation in India,” said Sarbhai.
Conclusively, Ripple’s Sarbhai suggests India that India should ‘consult private sector and stakeholders’ before taking any decision.
On the other hand, the country’s crypto exchanges have been witnessing a surge in trading volume. In fact, a report from Media Agency Bit2Buzz revealed that around 75% of the country’s youth are trading and holding cryptocurrency.
Besides, the report also marked that the exchanges and NEO banks have experienced significant growth of trading volume on their platforms during the COVID- lockdown.
So readers, what’s your take on the country’s next move? Do you think India will ban cryptocurrency in the country? Let us know in the comment below.