While the government has announced that it will likely introduce a regulatory framework to prevent certain irregularities in the market, it further proposed that it will not ban crypto entirely, but will only introduce rules and regulations. regulations in the digital currency sector.
On Thursday, November 18, Prime Minister Narendra Modi said cryptocurrencies must not fall into “the wrong hands and spoil our youth,” urging all democratic nations to come together and ensure that such things do not happen. not produce. The government and the RBI had recently hinted at tight regulatory control over cryptocurrency to prevent money laundering and terrorist financing, rather than banning it altogether.
Speaking at the Sydney Dialogue in a virtual opening speech, Prime Minister Modi said: “India’s industry and service sectors are undergoing massive digital transformation using technology for resource conversion and protection of biodiversity. Take for example cryptocurrency or Bitcoin. It is important that all democratic nations work together on this and ensure that this does not fall into the wrong hands which can spoil our youth. “
The comments come against the backdrop of a high-level meeting chaired by the Prime Minister on the regulation of digital tokens last week. Crypto-currencies are still not taxed in India, but have not been recognized as official currency, which means that it will not be recognized as a valid currency to settle transactions, but can be held as an asset like gold, stocks or bonds.
Meanwhile, the Crypto Bill will be presented to Parliament after Cabinet approval, Finance Minister Nirmala Sitharaman informed. The government has held extensive consultations on the legal framework for cryptocurrencies in India.
“This is a risky area and not in a full regulatory framework. We do not plan to ban advertisements, but we have taken steps to notify the public through RBI and SEBI. The guidelines of the Advertising Standards Council of India are under review and the current regulations are reviewed, so that we can make a decision on how to handle them, if necessary, ”Sitharaman told Rajya Sabha.
Respecting the words of the Honorable Narendra Modi, CryptoBiz founder Rahul Rathod expressed his take on the growing panic among young people. Rahul, who is also an active member of BACC, said: “We are truly grateful to the Prime Minister for addressing the concerns of young people. It is important that all democratic nations work together on this and ensure that this does not fall into the wrong hands which can spoil the youth of the nation. “
“We are also grateful to our honorable Minister of Finance who constantly strives to regulate the sector to make it much fairer and more legal. This will surely help the country to stay at the forefront of the world revolution and we are very much in favor of the government’s decision as it will help to strengthen our relationship with the central body. Getting regulations and working with fair policies will definitely boost the industry and people will have more clarity and awareness about it. “
“In accordance with government guidelines, cryptography will not be banned but will be regulated. We all need to stand together in this regard and favor the decision, because whatever decision the government makes is sure to benefit all crypto savvy investors and businesses. We need to be optimistic about the future of crypto and should instead adopt it with proper regulations, ”he added.
The Reserve Bank of India, on the other hand, has repeatedly warned against the cryptocurrency, fearing that the country’s macroeconomic aspects and financial stability will be hampered if coins are allowed to circulate freely. Addressing a SBI conclave on Tuesday, November 16 Governor of the Reserve Bank of India, Shaktikanta Das said there were “much deeper problems” with virtual currencies that could pose a threat to India’s economic and financial stability. “At the RBI, we started to take a closer look at the business models and strategies of banks. Make your business decisions, we won’t interfere, but we’ll see what kinds of vulnerabilities and what kinds of risks build up, and our first priority would be to warn the banks themselves, ”he added.
Quoting the same, Rathod expressed that different cryptos have different uses and cannot be compared to money. “The crypto industry is revolutionizing the financial economy and financial institutions must evolve accordingly. Whatever decision is made regarding the future of cryptos, we will certainly be supportive and work together to ensure transparency and security for all people who are a part of this global revolution, ”he said.
Amid the growing rumors surrounding the crypto market, Rathod says, “Blockchain technology is adopted and used in many applications by various governments across the world. The many benefits that come for the fields of science, medicine, engineering, administration, etc. show how advanced and useful it is. Cryptocurrency is just the tip of the iceberg and it is creating a new asset class that can be used as an investment and trading option after doing proper research, given the growth that various assets have. Virtuals have known over the past decade. As a member of BACC with top Indian exchanges such as WazirX, CoinDCX, Coinswitch, CryptoBiz calls on the authorities to consider putting in place a regulatory framework sooner so that the community of traders and investors can trade comfortably. At our level, we had issues with some foreign companies – a leading stock exchange in the United States and a blockchain company in Japan had made an investment of $ 255 million for CryptoBiz – due to the current situation of uncertainty, they decided to think again.
Since India has recognized the importance of blockchain, it is also important to address the importance of cryptocurrency in the future of digital payments and finance. Consequently, the regulatory framework should be put in place as soon as possible. To ensure proper functioning, Rathod works closely with the BACC to provide possible solutions to unleash the potential of the crypto market.
Being a crypto enthusiast, Omkar Sonawane, Marketing Manager at Cryptobiz is working with the BACC and the Working Committee for NFTs and Regulatory Framework for Crypto Trade in India to highlight the importance of crypto and the need for a regulatory framework as can be seen through the loss of companies and since then there has been an environment of uncertainty in the market.