Economic study flags concerns over crypto, pushes for global regulation

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Here’s a look at how industry players and experts reacted to the inclusion of cryptocurrencies in the Eco Survey.

Vikram Babbar, Head of Financial Services, EY:

“Addressing the risks and challenges associated with the growing popularity of cryptocurrencies will be imperative as global incidents of fraud and financial crime impact the financial sector. Several governments are considering regulations and frameworks to minimize vulnerabilities in the crypto ecosystem. The introduction of regulatory frameworks can lead to the coexistence of crypto with other digital currencies.

Edul Patel CEO and co-founder of Mudrex:

“Cryptocurrency is a rapidly growing asset around the world.

The FTX crash prompted governments around the world to write regulations to prevent such occurrences and protect people’s money. Effective regulation is key to fostering innovation and combating money laundering and fraud. As cryptocurrencies are global, India cannot regulate them alone, and asking for global standards that can be adapted to future international standards is a progressive step. With India assuming the presidency of the G-20 summit this year, the topic of cryptocurrency is also being discussed among member countries. This gives India the opportunity to set the tone for global cryptocurrency regulation.

Kiran Vivekananda, Director of Public Policy, CoinDCX:

“It is heartening to see India’s economic survey highlight the urgent need for a common global approach to crypto regulation. The economic study also highlights some challenges associated with the space, making it imperative that policymakers and industry experts come together to develop a framework for this complex, disruptive, dynamic, yet critical space. Given its borderless nature, global cooperation is also essential. India’s G20 Presidency, in my view, is the right time to take this conversation forward. As a leading player in India’s Web3 ecosystem, CoinDCX is committed to addressing all of these concerns and bringing the nuances of this space to light.

Punishes Agarwal, Founder, CoinX:

“India has consistently pushed for global regulation of crypto assets both at the OECD and the G20. The economic survey has highlighted the urgent need to regulate this industry while ensuring that it be flexible to meet the dynamic needs of the industry.

Rohit Arora, CEO and Co-Founder, Biz2credit and Biz2X:

“The economic study is correct that there is a need for global regulatory standards for cryptocurrencies. Although that is easier said than done, because right now the collapse of FTX in the US has created a regulatory backlash that will slow the speed of formulating these standards. At present, the world’s major economies agree on their experience that implementation will take a long time. In my opinion, there should be a regulator like the OECD that was formed for global tax structures.

Aarti Raote, Partner, Deloitte India

The economic survey highlighted the government’s concern over the regulation of the “crypto-ecosystem” and rightly so given the collapse of the crypto exchange and system weaknesses that are exposed from time to time. In light of similar apprehensions raised by other countries as well, the OECD has developed the Crypto Asset Reporting Framework (CARF) which will provide more visibility into intermediaries, e-wallet service providers and exchanges. The government is expected to strengthen reporting and regulation standards for these volatile instruments in line with suggestions provided by the OECD as well as safeguards put in place by other countries.

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