An Indian supreme court advocate has shared some thoughts on the kind of cryptocurrency regulation India can benefit from. The right regulatory framework “would ensure transparency, oversight and accountability,” but a “one size fits all” regulation would be a mistake, she explains. Meanwhile, the Indian crypto community and industry bodies have urged the central bank to allow crypto businesses to participate in its new regulatory sandbox.
How India Could Regulate the Crypto Industry
The regulatory framework for cryptocurrency in India is being finalized by an interministerial panel headed by Subhash Chandra Garg, Secretary of Department of Economic Affairs. The media recently reported that a draft bill has been circulating among relevant ministries for discussion. In an interview with the Economic Times CIO, N.S. Nappinai, a supreme court advocate and cyber law specialist, shared her thoughts on cryptocurrency regulation in India. She said:
Regulation would ensure transparency, oversight and accountability. The onus or burden on the government may be shifted to exchanges or other platforms offering virtual currencies or trading thereon.
“Explicit terms of functioning for such exchanges can regulate the kinds of virtual currencies that may be traded, the modes and methods of reporting, the restrictions on trading (including on valuation spurts etc.,) and also investor protection provisions can be incorporated,” the advocate suggested.
‘One Size Fits All’ Regulation Undesirable
There have been reports that the Indian government is both considering banning some cryptocurrencies and regulating some approved ones. The Economic Times recently reported on the “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019,” citing an unnamed government official claiming to know the details of the bill. Commenting on the…