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There was an understanding that cryptocurrency cannot be stopped, but should be regulated at the meeting of the Parliamentary Standing Committee on Finance with industry associations and experts on the matter of crypto finance.
It was agreed that a regulatory mechanism should be established to regulate cryptocurrencies. Sources said industry associations and stakeholders were not clear on who should be the regulator.
The most serious concern expressed by the lawmakers in the meeting was the safety of investors’ money. An MP expressed concern over full-page crypto ads in national dailies. According to sources, experts said that cryptocurrencies are a democracy for investors.
“The MPs (members of the Parliamentary Standing Committee on Finance) now want government officials to appear before it and address their concerns,” sources said at the committee meeting with industry associations and experts on the matter of crypto finance.
The parliamentary panel, headed by BJP leader Jayant Sinha, discussed the pros and cons of crypto finance with various stakeholders, and several members were in favor of regulating crypto-currency exchanges rather than outright banning crypto-currencies, sources said. According to.
The meeting took place against the backdrop of growing concerns in various quarters regarding crypto-currencies and the potential risks posed by trading in them, especially since there is a growing interest in such assets across the globe.
Currently there is no complete ban on cryptocurrencies in India
Currently, there are neither specific rules nor outright restrictions on the use of crypto-currencies in the country.
Representatives from Crypto Exchanges, Block Chain and Crypto Assets Council (BACC), industry bodies as well as academia and other stakeholders presented their views before the panel, whose meeting was organized by Prime Minister Narendra Modi with senior officials from various ministries. It happened a few days later. RBI on the issue of crypto-currencies.
This is the first meeting on the subject convened by the Parliamentary Standing Committee on Finance. The panel is headed by Sinha, who is also a former Minister of State for Finance.
Sources said that broadly the panel members wanted rules for crypto currency exchanges and were not in favor of banning crypto currency. Some Congress members in the panel told PTI that there are significant challenges in banning cryptocurrencies.
The panel’s broad view was that a Chinese wall should be put on the modularity of cryptocurrencies in the real world and its interface with the real world should be regulated, he said.
Currency is the domain of the sovereign by which its value is fixed and crypto currency is a computer program that is managed in a distributed format over the Internet. Its value is only discovered by a buyer and user on an exchange which is itself illegal, he noted.
One of the members also wondered how crypto currencies are being regulated when the internet is also difficult to regulate. Members also expressed concern about the possibility of using cryptocurrencies to finance terrorist activities.
In the morning, Sinha, chairman of the panel, said that the meeting on crypto finance will discuss the opportunities and challenges that this rapidly evolving industry presents to regulators and policy makers.
“We have called upon stakeholders from the entire industry including operators of major exchanges, members of CII as well as academics from the Indian Institute of Management (IIM) Ahmedabad, who have done a very thorough study on crypto finance,” Sinha told PTI. ,
In addition, he said that the panel has convened representatives of the India Internet and Mobile Association of India, of which the Blockchain and Crypto Assets Council (BACC), an exclusive body that deals with crypto finance players.
“We will hear from them about their thoughts on the right regulatory framework for this industry as it continues to grow and evolve,” he said.
On March 4, 2020, the Supreme Court quashed the RBI circular dated April 6, 2018, barring banks and entities regulated by it from providing services with respect to virtual currencies.
On February 5, 2021, the central bank set up an internal panel to suggest a model for a central bank digital currency.
The RBI had announced its intention to come up with an official digital currency amid the proliferation of cryptocurrencies that the central bank is concerned about.
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