Crypto companies participate in government document on crypto policy
The government reportedly plans to release a discussion paper by September outlining its position on crypto-related policies in the country, and crypto stakeholders — including the Bharat Web3 Association (BWA) — have already expressed their willingness to participate in the process. The paper is expected to pave the way for cryptocurrency regulation in India, while ensuring that companies comply with any rules that may be set by the government in the future.
Government discussion document on crypto policy
Economic Affairs Minister Ajay Seth claimed in a recent interview that this discussion paper will include suggestions on the future of crypto regulations in India, and also seek ideas from industry stakeholders on how to ensure the growth of crypto while keeping India’s legal and financial sanctity intact.
The current crypto regulations in India are primarily focused on creating an anti-money laundering ecosystem, outlining the dos and don’ts of electronic money transfers, and combating terrorist financing.
However, according to Seth, this policy position discussion paper will address the topics of defining the consequences for crypto law violations, along with other topics, as part of the framework for a broader policy cluster.
The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are part of the inter-ministerial group leading the work on this discussion paper.
BWA and crypto stakeholders participate in crypto policy document
Speaking to Gadgets360, BWA Chairman Dilip Chenoy said that clarity on crypto regulations in India could propel the country to become a leader in Web3 as the country already has the largest developer base in the world. Chenoy further said that all its 42 members and above – will give their 100 percent commitment to help the government with this document.
“We welcome the move by the Indian government to publish a discussion paper by September outlining its policy position on virtual digital assets. A sound regulatory framework for digital assets will enable innovation while protecting the interests of millions of VDA users in India. We will actively participate in the consultation process and share our views and recommendations for policy formulation,” Chenoy said.
“By seeking inputs from various stakeholders, a balanced regulatory framework can potentially be created,” said Edul Patel, CEO of crypto investment firm Mudrex, commenting on the development. “Currently, India’s focus on cryptocurrencies revolves around AML and CTF measures, but there is definitely a need for a broader mandate to expand the scope to include consumer protection, market integrity, and innovation that can ensure responsible growth.”
A2Z Crypto CEO Krishnendu Chatterjee highlighted the points that members of India’s Web3 industry want to emphasize to the government while submitting their suggestions for this document. Speaking to Gadgets360, Chatterjee said that the industry wants clarity on whether crypto is classified as a commodity or a security and whether crypto is even part of India’s payments act. Further, the industry is looking for laws on unbundling the responsibilities of exchanges and custodians by mandating segregation of client funds.
Revisions to India’s crypto taxes and the creation of a special body to oversee the Web3 sector are also among the key agenda items that the crypto circle wants to bring to the government’s attention.
CoinSwitch Co-Founder Ashish Singhal said He is curious to see what the government will present in this document before September, after gathering ideas and suggestions from industry insiders.
Speaking to Gadgets360, exchange leaders Giottus and Pi42 also noted that the sector could benefit immensely if India were to implement a more comprehensive set of crypto regulations.
“As global regulations take shape like MICA in Europe, we hope this discussion paper will be a starting point for building a regulatory framework for cryptos soon,” said Vikram Subburaj, CEO of Giottus.
According to Avinash Shekhar, CEO and co-founder of Pi42, “crypto regulations can mitigate risks while allowing the industry to grow and develop. A ban on crypto would not only be ineffective, but would also stifle innovation within the industry.”
