Can India lead the charge on crypto regulation? Here’s what this industry expert thinks
After India’s finance minister announced that the cryptocurrency sector will be one of the country’s priorities during the upcoming G20 presidency beginning in 2023, a crypto hedge fund CEO has given his views on India’s current crypto stance and its ability to lead global crypto regulatory efforts. .
Specifically, Anto Paroian, managing director and CEO of crypto hedge fund ARK36 agreed with Finance Minister Nirmala Sithamaran that regulating crypto should be a globally coordinated effort, but he is not sure that India is the best country to govern it, according to his comments shared with Finbold on November 2.
Paroian acknowledged that investors and crypto businesses would benefit from more consistent rules, as it would open them up to more customers and markets, and cryptos require “some degree of unification of their legal status and a consistent regulatory approach across jurisdictions” to become a universal financial asset.
Is India in a position to lead the charge on crypto regulation?
However, Paroian is unsure about the current treatment of digital assets by the Indian government, which sees them “more as a threat than an opportunity”, when 20% of the population is unbanked and crypto would give them better access to financial services.
According to him:
“Instead, the Indian government views cryptocurrencies as a tool for ‘drug financing, terrorist financing or simply gaming the system.'” Such ideas are antiquated and paint a false picture of a massive and incredibly innovative global industry driven at its core by the ideals of a fairer financial system.”
Finally, he believes that India’s success in leading a global crypto-regulatory effort must be preceded by “an honest effort to better understand this space and its goals.”
What is the government’s current stance on crypto?
Back in May, Ajay Seth, India’s economic secretary, told reporters that the government’s consultation paper on cryptocurrencies was ready, citing the need for a worldwide agreement on cryptocurrencies.
In July, Sitharaman said the country’s central bank, the Reserve Bank of India (RBI), was pushing for the ban on cryptocurrencies, maintaining that they should be banned as they threaten the country’s financial stability.
Currently, India has a 30% tax rate on cryptocurrency earnings, which the CEO of cryptocurrency exchange Binance, Changpeng Zhao, said is “probably going to kill the industry,” in live-streamed comments during a panel at a fintech conference in Singapore on Nov. 3.
