Indian MPs met with representatives of the crypto world in India, and they achieved a consensus in favor of crypto regulation.
For years, India and the crypto ban seemed to be on the same rails. It would not be like that anymore. A meeting of parliamentarians from the Asian nation and representatives of cryptocurrencies ended up coinciding that this industry must get regulated as soon as possible, removing the ban as an option on the table.
According to information provided by a source, specifically sent to the Financial Express, there was a consensus among members of parliament that there should be regulation instead of banning it.
Now there are two ways of looking at it; either 90% gets prohibited or 10% gets allowed, or vice versa. That is the compensation discussion that has been taking shape recently.
How to Treat Foreign Cryptocurrencies
The meeting received various representatives of Indian exchanges such as WazirX, Coinswitch Kuber, and CoinDCX, and members of the Blockchain and Crypto Assets Council (BACC), along with the deputy and former Union minister, Jayant Sinha.
The meeting focused on arguing how foreign cryptocurrency exchanges should get treated and how cryptocurrency-related advertising campaigns can get controlled.
They also remarked how investor protection can get ensured and how to use the central bank on a possible threat of cryptocurrencies to the economy.
The source highlighted that the government was quite clear that it must get something out before the Budget Session. This statement means that there is a general need to end this situation in the winter session. According to the information, the budget session would be in February 2022, when all this could get formalized in what would be equivalent to opening a massive market.
Cryptocurrencies are a big concern
It is worth remembering that in March 2020, when the Supreme Court reversed the decision to ban cryptocurrencies made by the central bank of India, the crypto industry had grown significantly. Even Coinbase opened an office in the country. However, the central bank remains a bit reluctant.
The bank’s governor, Shaktikanta Das, reiterated his criticism last week when he said that cryptocurrencies are a concern, among other vital struggles viewed from a macroeconomic and financial stability point of view.
Some representatives estimate that there are 100 million cryptocurrency users in India, while some other representatives think there are around 20 or 30 million, more or less like in the United States. The governor of the bank expressed his disagreement with such massive figures.
Yesterday’s parliamentary meeting followed a meeting chaired by Prime Minister Narendra Modi on Saturday. Saturday’s meeting had discussed the potential use of cryptocurrencies for illicit activities such as money laundering and terrorist financing, according to a report by CNBC TV-18.
Potentially misleading newspaper advertisements got also discussed at the meeting. These ads would be able to mislead young people by focusing on potential earnings rather than risks.
By: Jenson Nuñez
