Can’t stop crypto, but needs to be regulated, finance panel and industry agree

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There have been concerns about the investment potential and risks associated with cryptocurrencies.

New Delhi:

Cryptocurrency cannot be stopped but must be regulated, was the consensus at the meeting of the very first parliamentary panel discussing the broad contours of crypto finance. The Standing Committee on Finance, chaired by Jayant Sinha of the BJP, today met with representatives from the crypto exchanges, Blockchain and Crypto Assets Council (BACC), industry bodies and other stakeholders to discuss concerns regarding the regulation and promotion of cryptocurrency in India. There have been a lot of concerns from various sides regarding the investment potential and risks of cryptocurrency in the country.

There was consensus at the meeting that a regulatory mechanism should be put in place, although it was not yet clear who should be the regulator.

The safety of investors’ money was the most serious concern expressed at the meeting. A Member of Parliament who was part of the meeting expressed concern about the full-page cryptocurrency ads in national dailies. Experts have said that cryptocurrencies are a kind of investor democracy.

The panel meeting is growing in importance as it comes days after Prime Minister Narendra Modi chaired a high-level meeting with officials from various government departments and RBI on the issue of cryptocurrency.

“We called on stakeholders from across the industry, including operators of major stock exchanges, members of CII as well as academics from the Indian Institute of Management (IIM) Ahmedabad, who carried out a very in-depth study on the crypto-finance, ”Sinha said. the PTI news agency before the meeting.

Members now want government officials to appear before the committee and address their concerns. The official agenda of the meeting distributed to member deputies was as follows: “Hearing the views of industry associations / experts on the subject – Crypto-finance: opportunities and challenges”.

Another MP pointed out that El Salvador is the only country to recognize cryptocurrency as legal tender.

The Ministry of Finance has already organized several meetings with stakeholders to discuss the issue of regulation. The Reserve Bank of India and the Securities and Exchange Board of India have also raised concerns about the unregulated growth of cryptocurrencies in India, keeping vulnerable retail investors in mind.

“On crypto … we have serious concerns from a macroeconomic and financial stability perspective. How the problem should be handled – we have made our detailed suggestions to the government; as far as I know, the topic is under review. government asset, and the government will decide, “RBI Governor Shaktikanta Das said at a Business Standard event on Wednesday.

The Supreme Court canceled the RBI circular banning cryptocurrencies in early March 2020.

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