As G20’s Financial Stability Board (FSB), an international platform announced the regulatory framework for crypto-assets, the industry opines that India may finally create its own framework which may help in bringing back the industry from its limbo. “The G20 presidency’s take on regulatory guidelines for crypto-asset transactions might be a welcome move for the entire cryptocurrency space. It is also expected that this can present our country with a unique opportunity to strongly establish ourselves as a leader in front of the global cryptocurrency audience,” Nischal Shetty, co-founder, Shardeum, an EVM-based layer-1 blockchain platform, told FE Blockchain.
According to reports by Cointelegraph, a crypto media platform, Bitcoin continues to lead the market, as digital asset inflows saw a positive movement for the fourth consecutive week, with about $137 million incoming. The cryptocurrency market capital stands at$582.79 billion, as per insights from CoinMarketCap, a market research platform. The FSB report provides comprehensive recommendations for regulating cryptocurrency assets and Stablecoin issuers. “It might help to strengthen the ecosystem and provide consistent and comprehensive regulation for the Industry. This might make investors more confident to invest in digital assets such as cryptocurrency, eventually improving the fluctuating cryptocurrency market,” Punit Agarwal, founder, KoinX, a crypto taxation platform, said.
Even though cryptocurrencies are not banned in markets such as Dubai and the US, India has had a love-and-hate relationship with the government imposing 30% tax and 1% TDS, during FY22 Union Budget. In the last few years not only trading has declined, but many firms have also moved outside India to continue to operate.
While industry experts look forward to the upcoming synthesis paper by the FSB, they expect that India can take a momentous leap in shaping the future of the digital economy while ensuring the protection of its citizens, investors, and the stability of its financial system. “It is expected that the principle of ‘same activity, same risk, same regulation’ will bring much-needed consistency and comprehensiveness to the crypto-asset industry,” Rajagopal Menon, Vice President, WazirX, a cryptocurrency platform, concluded.
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