Mumbai/New Delhi, 09 Sept: The government is mindful of balancing financial stability and growth when it comes to crypto instruments, Jayant Sinha, Member of Parliament Lok Sabha and Chairman Standing Committee on Finance said at India’s first-ever crypto asset conference – HODL – 2021, organized by the Blockchain and Crypto Assets Council (BACC) of IAMAI.
“Crypto has clearly become an important asset class in India and has attracted a great interest. It’s important for us to take a step back and reflect on how India should participate in crypto finance. Not just in India but around the world crypto assets, decentralized finance – all of the new innovations in financial systems have caused the regulators and policymakers to think very carefully on how to ensure protection for consumers and a well-regulated, well-functioning set of markets associated with these crypto assets. I am confident that when it comes to crypto instruments we will be able to walk the tight rope of balancing stability and growth. Solutions for India has to be distinct and unique for India simply because of our unique circumstances.”
– Jayant Sinha
Voicing her views on why India needs regulations, Priyanka Chaturvedi, Member of Parliament, Rajya Sabha, further said, “The minute you regulate, you give some kind of legitimacy to this, safeguarding the interests of the investors…”
“All crypto players are open to having some kind of regulatory mechanism but I think the regulatory framework has to be more dynamic. Besides creating a policy framework, India will also have to create an enabling network for people, for young innovators to get in into this space and continue innovation and come up with more unicorns for India to build upon,” she said at the event.
Speaking on the need for a regulatory sandbox, Dr. Amar Patnaik, Member of Parliament, Rajya Sabha, said, “A strong regulatory framework for crypto assets would ensure that investors are safe and they have trust in the system. The priority should be to put in a regulatory and innovation sandbox both in SEBI and RBI and see prototype wise how it can marry with the Indian system.”
Dr. Patnaik further added, “CBDC as a fiat currency is a good idea and can very well coexist with private cryptocurrency with regulations, maybe a different regulator. This will lead to innovations across the board in different sectors such as smart contracts, AgriTech, logistics etc.” He also highlighted the need for various industry players to run education programs for retail investors, bureaucrats and policymakers among others.
The two-day event saw over 2000 attendees, including participants from 20 countries. HODL ’21 focused on making crypto-assets safe for investors and for a regulated and orderly growth of the industry.
The Blockchain and Crypto Assets Council (BACC), under the aegis of Fintech Convergence Council of the Internet and Mobile Association of India (IAMAI), represents the crypto industry in India. BACC has been supporting the crypto industry since 2017. It was formed with the vision of doing public advocacy for the industry, to increase awareness about crypto and provide industry guidance. All major crypto exchanges are members of this industry body.
The Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, and in the last 16 years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, digital entertainment, eCommerce and mobile & digital payments among others. Sixteen years after its establishment, the association is still the only professional industry body representing the online industry in India. The association is registered under the Societies Act and is a recognized charity in Maharashtra. With a membership of nearly 300 Indian and overseas companies, and with offices in Delhi and Mumbai the association is well placed to work towards charting a growth path for the digital industry in India.