India – A home to 7 million crypto users who are trading crores of Rupees on the Indian crypto exchanges, a land of various blockchain and crypto startups that are bringing millions of dollars of foreign investments to flourish the nation’s prosperity. India today is globally recognized as an epitome of democracy and is seen as a hub for decentralization and financial freedom.
The induction of new technology opens up the possibility of upgrading or creating an ecosystem. It provides an opportunity for new entrepreneurs, start-ups, businesses, innovations to thrive and develop.
Sectors such as the Internet and Telecom have all been a witness to this, where R&D is constantly happening.
Today AI, ML, Deep learning, IoTs are key buzz words in regards to technology globally. Similarly, Blockchain and Cryptocurrency too are seeing rapid adoption globally as well as in India. In fact, during the last year and especially during the pandemic, this sector has outperformed most of the industries.
Recruitment of a skilled workforce was among the highest in the cryptocurrency sector, in India. The Indian workforce operating in this sector is considered one of the best when stacked against the global workforce as far as fintech and emerging technologies are concerned.
The ban will also act as a damper to the R&D work carried out by various institutions and individuals who have worked toward developing innovative global financial solutions.
THE WORLD BANK
“Cryptocurrencies and blockchain protocols are
part of a tidal wave of new technologies that is changing the way production and commerce are organized.”
In October 2019, UNICEF launched the CryptoFund, a new financial vehicle allowing UNICEF to receive, hold, and disburse cryptocurrency – The CryptoFund is a pooled fund of bitcoin and ether. It is a part of UNICEF’s Innovation Fund, with the distinction that investments made denominated in crypto.
CFA Institute will add topics on cryptocurrencies and blockchain to its Level I and II curriculums. “We saw the field advancing more quickly than other fields, and we also saw it as more durable,” said
Stephen Horan, MD.
“We have seen historical instances where such a rush into certain investments has benefited our economy and those investors who backed the right ventures”,
Jay Clayton Chairman, SEC.
EUROPEAN CENTRAL BANK
We need better cross-border payments … because it’s good for development, it’s good for financial inclusion, so Bitcoin can help us, it can pay us a service by forcing us to upgrade our systems. That’s a positive lesson.” said
Benoit Coeure, EUROPEAN CENTRAL BANK EXECUTIVE BOARD MEMBER
Instead of banning, GOI can bring the industry under regulatory and taxation framework, thus enabling it to better monitor the sector, earn revenue and help in national fin-tech industry and solution providers.
Bitcoin and other cryptocurrencies open a tremendous investment and trading opportunity. Trading operations can be done in properly regulated and licensed exchanges, with proper KYC and data disclosure compliances fulfilling the requirements Indian government and SEBI keep before the exchanges
Crypto organizations in India do not pose a threat to India’s monetary system. On the contrary, they create a new economy that can work in parallel with well-structured regulations.
Develop a rule book that defines cryptocurrencies, operations, treatment (security/commodity/asset), trading, mining, taxing, crowdfunding (ICOs, STOs, IEOs), crypto-based products (options, futures, ETFs), and donations.
Develop a penal framework to protect investors against cybercrimes, hacks, illegal trading, and other crypto-based criminal practices.
Create a list of requirements including all documentation, application, corporate structure, staff, Accounting, Banking, KYC/AML, Fees, and other compliance requirements for an organization to obtain a cryptocurrency exchange license
Union Ministers and advisors of Govt. of India can meet the industry leaders to gain the right understanding of the cryptocurrency industry.
Form a specialized Advisory and R&D team which researches crypto markets, advises the Indian government and is in constant touch with the crypto leaders of India. The leaders of the industry will assist the governments to implement digital currency and blockchain solutions in their architectures making blockchain-based INR a dynamic currency