Mumbai:

Leaders of global crypto exchanges have said that while India’s messaging on cryptocurrencies has so far been mixed, the proposed bill likely to be introduced in the winter session of Parliament gives New Delhi a chance to bring in a progressive regulatory framework that could propel the country to the forefront of blockchain technology.

Stakeholders, including regulators, have made their representations to a panel of federal lawmakers and the Cryptocurrency and Regulation of Official Digital Currency Bill 2021 is likely to become law soon.

“The journey of discovery that India is travelling in terms of regulating cryptocurrencies is one that most governments have to address and implement according to what is right for them at the time,” said Adam Mazzaferro, founder, @pay, an Australian decentralised platform that operates @pay token. “We believe that it is also important to consider how tech may benefit the general economy and the processes that drive many functions along the way. Over time, we take the view that these benefits and efficiencies will come through.”

There has been major confusion over crypto assets in India due to multiple messaging by different stakeholders: the central bank has red flagged risks from cryptocurrency to the financial system while North Block is seeking to ‘regulate’ the asset class in its new crypto bill instead of enforcing an outright ban.

The global DeFi community at large is seeking clarity and a clear direction in regulations.

“India’s politicians have consistently sent out mixed messages, threatening to ban cryptocurrencies several times, perhaps over fears of enabling the black money markets or (triggering) capital flight. Now is the time to encourage innovation in one of the most innovative countries in the world and to attract high quality projects in the space to advance the technology as opposed to driving them underground or abroad to territories as close as Dubai,” said Toby Gilbert, CEO, Coinweb, which operates out of London, Kiev, and Bangkok.

Global industry experts believe Indian regulators, while framing laws around crypto assets, should keep in mind that crypto currencies are an integral part of the entire blockchain ecosystem.

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