Cryptocurrency: Indian Govt Should Create Framework For Exchanges And Investors

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Personal Finance
oi-Sunil Fernandes
By Hitesh Malviya

| Published: Friday, November 26, 2021, 8:30 [IST]

The USA has one of the best policies in place for usage, and trading or cryptocurrency. Cryptocurrency exchanges are regulated in the same way as conventional AML/CFT facilitators, financial firms, and capital transmitters in the United States, and are subject to the same rules, including those outlined in the Bank Secrecy Act amendments of 2021.

There are a lot of uncertainties around because we see different reports almost everyday. It’s an environment of FUD, we need to wait and watch when the cryptocurrency regulation bill goes on the table in the upcoming winter session.

The Indian government should create a regulatory framework for both exchanges, and investors who are dealing in cryptocurrency-based trading, and services. A well-defined regulation will also accelerate the growth of the cryptocurrency and blockchain ecosystem in India, more foreign investment will get attracted after such implementation of policies. For investors, the government should work on creating awareness about the usage, and risk of cryptocurrency by leveraging media and communication. Government should also be working towards investor protection by creating cybercrime laws, and resources to deal with cryptocurrency-based scams.

The Blanket ban on cryptocurrencies would be the worst-case scenario, I doubt it won’t happen. But if it happens then the one possible reason could be the launch of CBDC. China implemented a blanket ban on cryptocurrency trading and mining to create a safe passage for the adoption of their CDBC. India may follow the same route. Chances are low though.

Nothing will happen to the cryptocurrency market, because it’s a global market, and investors would have plenty of options available to move their crypto assets and trade on decentralized and international exchanges. It’s hard to stop the crypto movement now, no government can stop it. It will grow more even if a ban comes into place.

(Hitesh Malviya, the author of the article is founder of itsblockchain.com, India’s First & Oldest Blockchain Cryptocurrency Publication. The comments are that of the author and do not reflect the opinion of Greynium Information Technologies Pvt Ltd).

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Story first published: Friday, November 26, 2021, 8:30 [IST]