NEW HOPES FOR INDIAN CRYPTO COMMUNITY
Without clear regulations, cryptocurrency innovation in India is being stifled.
Indian law firm Finlaw Associates along with Estonian Crypto Association, will submit a representation to the Indian government, urging Government of India to bring in regulations for the cryptocurrency. The representation will be submitted to the finance and law ministries of the government by the last week of Feb 2021 as per Adv.P.M.Mishra ( Managing Partner of Finlaw Associates).
Proposed regulatory representation paper more or less focused on regulation related to FEMA Act ,SEBI guidelines on Securities, CIS( Collective Investment Scheme),RBI,Income tax & GST.
As per Adv.Mishra, Ignorance may be bliss for some, but ask anyone in commerce or finance, and they will make it abundantly clear: Ignorance is risk. For that reason, each market embrace reasonable regulation to ensure transparency and fairness But an emergent fourth asset class, cryptocurrencies, has no single regulator, and that is leading to uncertainty and confusion.
Without clear regulations, cryptocurrency innovation in India is being stifled. Entrepreneurs sit on the sidelines for fear of innocently running afoul of the law. Investors, meanwhile, hang back because of uncertainty regarding valuations. And the commonweal suffers, as other countries lure innovators away from India by creating rules that make their jurisdictions more hospitable to this growing asset class. Given the regulatory uncertainty, Government also risks allowing fraudulent purveyors of cryptocurrencies to drive out the good.
Encourage the formation of a self-regulatory body to promote and enforce standards among the crypto community. Convene an interagency working group, including representatives from the crypto community, to harmonize existing regulatory practices and develop a formal policy on cryptocurrencies.
In connection with the above, provide public notice of a proposed rule governing cryptocurrencies and take comments from the public. Officially recognize that the amount of decentralization is an important factor in determining whether a cryptocurrency is a security or not.
These steps will help to promote order, consistency, and accountability within the cryptocurrency market without imposing undue burdens. And they will help India as a country to emerge as a wise leader in the regulation of cryptocurrency, which will spur entrepreneurship and innovation in this country. After all, wisdom — more than ignorance — is a truer form of bliss.
“Similarly, amendments in the Income Tax and GST laws would provide clarity on the applicability of tax and finally, the Indian Penal Code (IPC) along with IT laws would recognize specific acts as offences in order to impose penalties,” Adv.Mishra added.
After COVID situation worldwide, BTC bounce back surprisingly in 2021.At the same time China is showing more than expected interest in Crypto, that’s another reason to think about future of crypto globally & are we not doing enough to compete with future alternative economy.
“Our country desperately in need of ‘Fintech Regulation’ related to Crypto,AI,Blockchain & many others to stop Ponzi scheme Operators,Cyber Crimes & Financial Terrorism as a whole” as per Adv.P.M.Mishra.