In a letter to the parliamentary committee on finance, members, industry experts, and associations stressed the need to regulate cryptocurrency and that it shouldn’t be banned. The parliament’s standing committee discussed cryptocurrency on Monday during its meeting, including its current status, prospects, and challenges facing the government and stakeholder community. Jayant Sinha, a former minister of finance and leader of the BJP, presided over the panel.
In addition, it was the first time that the Parliamentary Standing Committee on Finance had convened a meeting about crypto finance. According to most parties involved in the debate, there is no doubt that cryptocurrency is here to stay. According to the majority, the focus needs to be on regulating them. Earlier this year, the government was working on banning cryptocurrencies, but since then, things have changed. There has been a dramatic increase in cryptocurrency investments, and young people are increasingly interested in it.
After the meeting on Monday, things in the cryptocurrency space in India are now less uncertain, and now we know how things are going to develop. The following are five key points that were discussed during the meeting.
How will cryptocurrencies be regulated?
As of now, it’s not a question of if but when. Regulations for cryptocurrencies will be implemented in India. We’ll have to wait and see when and how they’re introduced. As a result of the parliamentary panel meeting on cryptocurrency, one of the most talked-about topics was who would regulate it? The government is solely responsible for deciding on regulating cryptocurrency. The RBI was mentioned during the meeting as being able to handle cryptocurrencies; however, it has previously said cryptocurrencies should be banned. It remains to be seen whether we will create a new regulatory body to oversee cryptocurrencies or if the government will appoint an existing body for the job.
Advertisements pose a problem
Crypto-exchange platforms have suddenly flooded the market with advertisements, which has not gone unnoticed. In an earlier article, India Today Tech highlighted how crypto exchange platforms are marketing Bitcoin and other cryptocurrencies as quick money that young people are enticed to invest in. The parliamentary panel also raised that these advertisements were overly-promising and lacked transparency concerning cryptocurrencies.
The RBI has yet to be convinced
It is still unclear whether the Reserve Bank of India (RBI) is completely convinced that cryptocurrencies can be effective means of payment. Previously, the RBI has expressed support for a complete ban on cryptocurrencies. A report by Economic Times said that even at the meeting, the Central bank was skeptical about the figures provided by the crypto exchange platforms but said there were other aspects to consider. In an interview a few days before the meeting, the RBI’s Shaktikanta Das said that cryptocurrencies are a serious threat to any financial system since central banks do not regulate them.
Bills are not far away
Since a long time ago, there have been rumors of a crypto bill. The government reportedly prepared one before the 2021 Union Budget. Among the provisions of the bill were provisions banning cryptocurrencies. A new bill appears to be being drafted now that the old one was scrapped. Similar legislation was discussed during Monday’s meeting. Parliament’s Winter Session begins next week, and there are reports the government is considering introducing new crypto legislation. There is a possibility the legislation will provide investors with more protection.
It is crucial to protect investors
A large portion of the discussion was devoted to investor protection. In a meeting with the government last week, Crypto exchange platforms reported that there are over 15 million cryptocurrency investors in the country with more than Rs 600 crore invested in digital currency. The MPs underscored the importance of investing money safely in all members. It should be noted that this meeting was to gather information from all parties.