Friday, September 17, 2021

Indian crypto experts recommend the crypto industry be regulated as a commodity.

The Takeaway:

Crypto insiders in India have asked for the asset class to be regulated as commodities, among other recommendations.

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India’s blockchain and cryptocurrency insiders have recommended that cryptocurrencies be seen as commodities to the ministry of finance. According to two unnamed sources, crypto pundits suggest that the Gujarat International Financial Services Centres Authority (IFSCA) regulates cryptocurrency transactions. Under the regulation of that authority, investors would be treated as commodity investors who must follow KYC compliance standards. They also recommend that investors’ individual holdings be limited to $250,000 under the Liberalised Remittance Scheme.

 

Indian crypto insiders had previously recommended setting up a separate entity. 

The current recommendation is different from an earlier proposal, which recommended a separate entity. One participant in the discussions said, “We had earlier suggested setting up a separate Digital Asset Regulatory Authority (DARO), but the idea didn’t fly with the government as it would require a separate law altogether.” The Indian government will want to move fast, as the asset class is flocked to in the country. A recent report shows that non-metropolitan cities have played a large part in adoption. One of the country’s most popular electronics brands, Xiaomi, is also considering launching a lending platform, though it has held off for the moment.

 

Crypto regulations remain in a grey area. 

The news is the latest development in the ongoing saga, the Indian cryptocurrency regulation scene that still remains in a grey area. The decision to regulate the market has been postponed, besides flip-flopping between a draconian stance and a reasonably encouraging one. However, the latest development suggests that the government is going for a more friendly approach. It realizes that the market has a lot to offer and can encourage growth. At the same time, it’s concerned about the fraud and the potential for illicit activity.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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