Posts

SEBI to get involved in Crypto regulation in India

avatar of @reeta0119
25
@reeta0119
·
·
0 views
·
3 min read

Crypto bill in India has created lots of chaos and because of people many existing investors are going through a tough time and its also impacting new investors. The bigger problem here is that there is no clarity on the bill whether govt is going to regulate or put restrictions in place. Now there is an update that crypto is not going to be banned instead govt is working towards putting it under the regulation which sounds pretty good and might have relaxed many investors. Although this sounds good this has not come from the govt side and only the media is reporting this so can be relied completely upon. The entire community is eyeing the government to see what they are going to unfold and how much time they take to make it happen. It will surely take some time and its not likely to happen in 2021 however things can move towards finishing level in 2022.

src

When we look at the adoption and innovation then it seems that things are moving forward in the right direction. Many big names are involved in crypto and recent Paytm news was also a big milestone. Quite a big amount has been invested by Indians in crypto so taking hard decisions will not be easy for the government and its anticipated that things will move towards positivity.

This conforms to what Finance Minister Nirmala Sitharaman said earlier this week about Bitcoin not being recognized as a currency for payments in India. India is, however, working on its own central bank digital currency (CBDC) that will be governed and monitored by the Reserve Bank of India (RBI).

This is good that crypto will not be considered as currency as fiat INR is good enough and treating it as a currency will have many complications however making it a tradable asset is good enough for everyone. India has been already working on its CDBC will bring digital fiat but its not crypto and will have the same value as fiat. This shows that govt is ready to adopt digitization and this is certainly required.

The note also reportedly highlights that citizens will need to declare their crypto assets and keep them on Indian exchanges. They will no longer be allowed to keep crypto on foreign exchanges or in private wallets.

This statement is a little contradictory I believe because if we say that everyone has to declare their crypto is good but banning them to hold everything in Indian exchnage only is something that's not good. This way there will be a limit on the innovation because no exchnage can offer everything that's why people use international exchnage and how this will work with the international exchanges.

src

As of now its not clear how things will be managed later however it can be good if things are cleared. Sometime back it was asked from all the companies to declare their crypto holdings and the same should be done with individuals as well. As of now, anyone can trade with India or international exchange and govt doesn't have any data but Indian exchanges are KYC compliant which can help them to have the information and data.

Crypto is here to stay and its decentralized so even after bank people will find alternate ways to trade in crypto and that's not good for the government. If legit ways are provided then people will try not to follow the ways that can not even bring revenue. Crypto can be a good way to earn revenue for the government if they bring regulation and ensure that policies are easy with people.

Thank you so much Stay Safe

Posted Using LeoFinance Beta