Union Finance Minister Nirmala Sitharaman on July 16,2023, lauded the progress of work towards developing the cryptocurrency-asset reporting framework and updating the Common Reporting Standard, as she called it, “A welcome step.” For the cryptocurrency industry which has so far struggled to keep its head above the water in India, this marks a significant milestone. “This is a significant development towards the creation of guidance note on cryptocurrency regulation and lay down of the foundation for synthesis paper scheduled for G2O September meet,” Sharat Chandra, blockchain and emerging tech evangelist, told FE Blockchain.
The cryptocurrency market capital stands at $589.18 billion (17 July, 2023, 14:01 pm IST), representing a rise of about 0.76%, as per insights from CoinMarketCap, a market research platform. Experts believe the decentralised finance (DeFi) industry contributed to about $3.78 billion, which is around 5.63% of the total volume of the cryptocurrency market. “The cryptocurrency market is upbeat as SEC approval for Bitcoin ETF is expected to go through a review, as per some media reports. This might contribute to the Bitcoin (BTC) holding above the $30,000 mark for the second week and Ether (ETH) to about the $2,000 mark,” Shivam Thakral, CEO, BuyUcoin, a digital asset exchange.
Interestingly, it is believed the current developments between Ripple CEO and Securities Exchange Commission (SEC) might increase the demand for more regulations for the digital asset industry.
From what it is understood, with G20 meetings being held under India’s presidency, the digital assets industry may finally find some answers to their problems.“ Before India passes the G20 presidency baton to the next country in November this year, some concrete outcomes on cryptocurrency regulations can be expected through the collaboration of all G20 leaders. Once a regulatory framework is in place, the cryptocurrency industry might enter the next phase of growth,” Jaideep Yadav, founder, Kandle, a cryptocurrency GameFi, explained further.
However, when looked at from a macro level, experts believe that the United States (US) cryptocurrency market is moving at a fast pace with Bitcoin ETF approval by SEC. “The progress around the development of the Crypto-Asset Reporting Framework and the Common Reporting Standard might help India to emerge as a global leader in the Web3.0 and virtual digital asset sectors,” R.Venkatesh, senior vice-president, public policy head, CoinSwitch, a crypto investing platform, concluded.