India's urgent need to enable cryptocurrency regulation | Billionaire Mentor

With the right checks and balances, along with the fast growing Indian consumer internet economy, India can become home to blockchain innovations that can rapidly propel India towards becoming a $ 10 trillion economy.

India's urgent need to enable cryptocurrency regulation
 India's urgent need to enable cryptocurrency regulation

In addition, blockchain use cases are opening new doors for finance, accounting, marketing, legal, analysts, crypto brokers, ICO consultants, crypto journalists, and similar professionals.

  




Cryptocurrency mainly uses a distributed ledger technology called the blockchain. Blockchain is rapidly gaining acceptance in areas such as identity management, smart contracts, supply chain management, and more.

World Economic Forum reports and surveys indicate that blockchain expertise appears to be the fastest-growing skill requirement that opens up a huge career opportunity for professionals involved with this ecosystem. Due to the deluge of potential innovative applications, many fields of career and livelihood options are emerging such as blockchain developers, solution architects, designers, project monitoring professionals, quality control engineers, and more.

In addition, blockchain use cases are opening new doors for finance, accounting, marketing, legal, analysts, crypto brokers, ICO consultants, crypto journalists, and similar professionals.

Therefore, blockchain is one of the fastest emerging technology that no country can ignore. Given that India has been home to the technological ecosystem in the last few decades, this technology is a bus we cannot miss. Given its potential, India is certainly in a good position to move fast to monetize and take advantage of the opportunities offered by this technology. It is worth noting that a token platform founded by three Indians that was built around the Ethereum blockchain today has a market capitalization of around US $ 13 billion.

Cryptocurrency is one of the most prominent and popular use cases that uses blockchain technology. The global user base grew by 190 percent between 2018 and 2020, increasing by more than 200 million, most recently reaching a total cryptocurrency market capitalization of nearly $ 2 trillion in April. While there is no survey data on how many Indians hold and deal in cryptocurrencies, if one looks at trades happening in Indian cryptocurrency exchanges, it is estimated that around 15 million Indians can hold cryptocurrency today. It is also estimated that with a monthly trading volume in the region of around Rs 60,000 crore, the holding is valued at around Rs 15,000 crore.

The instability and decentralized nature of cryptocurrency have often raised questions in the minds of government and regulators on India's readiness to adopt this emerging trend. Several warning notices have been issued over the years by the Reserve Bank of India (RBI), which essentially discourages banks and individuals from dipping their toes in a pool called cryptocurrency.

Back in 2018, it banned cryptocurrency by the RBI, which was later repealed by the Supreme Court in 2020, giving the industry the much-needed relief that it had been waiting for. The government certainly needs to join hands and support the industry to tackle this complex, yet promising, emerging technology. There are legitimate concerns in the RBI as well as in the government, which have to be addressed by offering practical solutions that address their concerns.

A detailed set of recommendations along with a whitepaper was recently presented to the government by IndiaTech.org, an internet start-up industry association. The basic step to address most concerns is that India should stop treating cryptocurrency as a currency and recognize it as a digital asset, thereby removing the fear and uncertainty of being a competitive currency.

Introducing a system of registering Indian cryptocurrency exchanges with FDI limits similar to banks and recognizing them by establishing checks and balances, compulsory accounting of all cryptocurrency holders through bodies like KYC, Chartered Accountants / Cost Accountants, etc., and Notifying accounting standards for disclosure, etc. There are some recommendations made.

Recommendations also prescribe solutions to aspects such as anti-money laundering, taxation, traceability, disclosure, imports associated with harmonized system code, setting limits, source disclosure, and so on. By doing this, India will save billions of dollars of revenue that may be payable to foreign currency.

With the right checks and balances, along with the fast-growing Indian consumer internet economy, India can also be home to blockchain innovations that can propel India towards a $ 10 trillion economy, similar to the IT and ITES boom that has us here Transported to It will also allow Indians to participate in promising new wealth creation and investment opportunities.

The cryptocurrency rules supported by an enabling framework around the blockchain hold great potential for India. However, for India to seize this opportunity, the government and regulators must play the role of a part politician and partial policeman. This will ensure openness to adopt new technologies, innovations and promote wealth creation supported by policies that will reduce early mover advantage and continue to travel with other cryptocurrency-friendly geographies.

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