Crypto enthusiasts agreed that digital assets will not go away, but that the government should find a mechanism to regulate them, which would help legitimate the emerging asset class, proponents said.
Although several members of the government panel agreed with this viewpoint, others were concerned about the possibility of abuse.
The first such meeting with government leaders, which had been anticipated for some time by crypto advocates, was regarded as “welcoming” and “progressive.”
As stated by a source, the MPs were fully informed of the ecosystem and how crypto functions. “Lawmakers wanted to know how exchanges work and what the industry’s perspective was,” the source disclosed.
The viewpoint of the committee
The goal of this week’s discussion, said committee chairman Jayant Sinha, was to obtain a deeper understanding of the market.
Industry numbers were presented by prominent exchange representatives, who highlighted user bases and investments.
CoinSwitch Kuber and WazirX, two of the most popular cryptocurrency exchange platforms, claim to have a combined user base of almost 10 million. Other industry sources put the number of registered users at around 15 million, with a total investment value of around 6 billion rupees ($80.5 million).
The decision
Although skeptical of such figures because of its long-standing crypto skepticism, the Reserve Bank of India (RBI) feels that other factors have a role in crypto acceptance.
Based on data, Japan and Korea were mentioned as countries that had “identified cryptos in light of other parts of the technology.” Any regulation, as stated by the bank, must consider investor interests, financial stability, capital controls, and illicit financing.
Other members of the panel wanted to hear how any potential cryptocurrency misuses would be dealt with. They also objected to commercials pushing young people to invest in high-risk assets.
Members of Prime Minister Narendra Modi’s high-level group discussed this topic earlier this week, and the panel ultimately decided to continue proactively engaging with experts and other stakeholders in the evolving business.
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