Regulate Crypto, Don’t Ban, say House Members

Story Highlights
  • MPs of Parliamentary Standing Committee on Finance call for regulation instead of restrictions.
  • Parliamentary panel convened with crypto stakeholders to discuss impacts and risks of crypto on Indian economy.
  • RBI governor Shaktikanta Das also underlined the concerns around cryptocurrencies, calling them a threat to any financial system.

New Delhi: Within days of PM Modis convene over the future of crypto in India, a Parliamentary panel held a dialogue with the crypto stake holders on Monday and called for regulation instead of an outright ban.

Flagging of a full page Crypto advertising document, MPs of the Parliamentary Standing Committee on Finance cited security of investors’ money as the most serious concern. ‘This is almost like the Ponzi scheme which got strong legal regulations later,” MPs asserted, adding that El Salvador is the only country to legalise crypto so far.

The meeting focused majorly on two concerns of over-promising and lack of transparency associated with cryptocurrencies. Apart from discussing the pros and cons of Crypto, the panel also spoke about issues related to crypto finance with associations and industry experts.

Close sources reveal that the meeting was a positive first step towards understanding cryptocurrencies, which yielded favour in regulartion from majority of the members instead of implementing a ban.The meeting stemmed from the recent concern’s about crypto currencies and the possible risks emanating from trading in them.Members from crypto exchanges, block chain and Crypto Assets Council (BACC), industry bodies as well as academicians and other stakeholders submitted their views before the panel during the meeting yesterday.

Earlier, RBI Governor Shaktikanta Das had cautioned flagging cryptocurrencies a serious concern from a macroeconomic and financial stability standpoint. “As a central banker, we have serious concerns about it and we have flagged it many times,’’ Das stated.

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