Three back to back events have put a question mark over the possibility of cryptocurrencies emerging from the shadows sometime in the near future despite a strong pitch by the stakeholders through advertisements, claims of rising public participation and breaking of ice of sorts in the form of a first high-level meet of crypto operators with a parliamentary panel.
First, RBI Governor Shaktikanta Das made it clear there was no change in the central bank’s position that the issue needs deeper discussion and the number of crypto accounts in India was being exaggerated.
Second, the Parliamentary committee on Finance that met on Monday flagged serious concerns over the obscurity of cryptocurrencies, operations of crypto exchanges and impact on the economy.
Thirdly, after a meeting by Prime Minister Narendra Modi on Saturday with stakeholders and experts and the RBI, Finance Ministry, Home Ministry on cryptocurrency, the government said, “It was strongly felt that attempts to mislead young people by exaggerating returns and using opaque advertising should be stopped.”
THE CRYPTO PITCH FOR LEGITIMACY
India Today has accessed exclusive details of the presentations made by Blockchain and Crypto Assets Council (BACC) and industry and commerce bodies, the CII and ASSOCHAM, before the members of a parliamentary committee on Monday.
The BACC presentation, titled “Crypto-finance Opportunities & Challenges”, lists the opportunities the industry offers and its needs and recommendations.
Under “Regulation and Customer Protection”, the BACC presentation said the Indian crypto exchanges struggle to form consistent compliance guidelines and report red flag items to the appropriate authorities in the absence of regulations.
It cited the example of the UK’s Financial Conduct Authority, Singapore, the US, etc. where regulations have been put in place. It claimed that these…
