Members of Parliament (MPs), executives from the business world, and trade groups all testified
before the parliamentary finance committee that cryptocurrency couldn't be prohibited, so the
next step should be to explore how to regulate it. On Monday, the parliamentary standing
committee discussed India's present position on cryptocurrency. Crypto potentialities and
challenges that lie ahead for both - the government and stakeholders were also discussed. BJP
member Jayant Sinha headed the panel, a former Ministry of State for Finance Minister.
Up until now, there has been a lot of uncertainty surrounding cryptocurrency in India, but
Monday's meeting provided us with some clarity. Here are five critical points discussed throughout the discussion on future cryptocurrency in India:
Who will regulate cryptocurrency?
Now, it's not a question of if, but when. In the future, cryptocurrencies will undoubtedly be
regulated in India. When and how regulations are implemented is yet to be seen. The central
talking point at the parliamentary panel session was who would regulate cryptocurrencies? The
professional community has handed the decision over to the government. It was stated during the
meeting that the RBI might regulate cryptocurrencies. However, it has previously been declared
that cryptocurrency should be prohibited. So, time will tell if we'll have a new organization to
oversee cryptocurrencies or whether the government will name an old one to watch over it.
A bill is not so far
For a while, we've been hearing about possible future crypto legislation. It's rumored that the
government had one ready before the 2021 budget was presented. The bill included provisions to
prohibit cryptocurrencies. Of course, it has been canceled, and a new bill is now in the works.
The same legislation was discussed at Monday's meeting. The proposal may seek to increase
investor protection.
Advertisements are a problem
There has been a recent increase in crypto-exchange advertising in proportion to the bitcoin price
in India, price and it hasn't gone unnoticed. We previously noted how crypto exchange platforms
are pushing Bitcoin, the best cryptocurrency to invest in in 2021, to earn quick money and entice
youngsters into investing in them. The parliamentary panel noted that these advertisements were
over-promising and did not provide sufficient information on cryptocurrencies.
RBI is still not convinced
The Reserve Bank of India (RBI) is still unconvinced about the usefulness of cryptocurrencies.
According to a report by The Times of India, the central bank was unimpressed with the crypto-
exchange platforms' figures during the meeting. RBI governor Shaktikanta Das declared that
cryptocurrencies are a significant risk to any financial system since they are not regulated by
central banks just a few days before the parliamentary panel meeting was convened.
Protecting investors is the key.
The primary point of interest was investor protection. The country's crypto exchange platforms
informed the government that roughly 15 million crypto investors in Pakistan have invested over
Rs 600 crore in the best cryptocurrencies to invest in 2021. All members stated that protecting
investors' money is a significant concern for everyone. This parliamentary panel meeting was
only intended to collect information about the future of cryptocurrencies in India from all parties involved.
