Crypto regulations: Will welcome regulations on cryptocurrency to harness tech, says Jayant Sinha

Synopsis

Speaking to CNBC-TV18, Sinha said that the parliamentary panel hosted various representatives of cryptocurrency exchanges in India earlier today but the panel did not form any view on the topic.

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MUMBAI: Jayant Sinha, a member of the parliament and chairman of the Parliamentary committee on finance, said that he will welcome regulations for cryptocurrency that will allow India to harness the power of the new technology.

Speaking to CNBC-TV18, Sinha said that the parliamentary panel hosted various representatives of cryptocurrency exchanges in India earlier today but the panel did not form any view on the topic. The meeting between the crypto industry and the panel came just days ahead of the winter session of the parliament where the government is reportedly looking to reintroduce a bill on cryptocurrency.

“Regulatory framework will have to balance the opportunities and risks attached to cryptocurrencies,” Sinha told CNBC-TV18.
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Sinha said that the industry representatives confirmed that India has 1.5 crore registered cryptocurrency users with total assets worth $6 billion. The information stands in contrast to a recent report that claimed that India had over 100 million cryptocurrency users, which was advertised by cryptocurrency exchanges on national dailies.

Recently, Reserve Bank of India Governor Shaktikanta Das had suggested that the numbers put forth by the crypto industry were exaggerated while he also reiterated the grave concerns that the central bank has with respect to cryptocurrencies.

Sinha said that the current taxation framework in the country is well-equipped to handle cryptocurrency and crypto finance-related matters if the asset is legally recognized by the government.

The parliamentarian, however, pointed out that there are concerns over four main areas of risks attached with the digital tokens, namely, investor protection, monetary policy risk, fiscal policy risk and illicit finance.

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Updated: 11/15/2021 — 12:00