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The annual economic survey of Indians was released and crypto concerns were discussed in depth.
The crypto industry was covered in detail in this year’s Economic Survey, and findings from the survey, a summary of which was covered in the Indian-based Business Standard, suggest that there should be an emphasis on an international collaboration in order to bring crypto into a globally recognised regulatory framework.
There was a lot of discussion in the poll about the collapse of the FTX, the bankrupt which followed, and the fact that former CEO Sam Bankman-Fried has come under fraud in the United States.
Again, the term "no intrinsic value" was taken from cryptocurrencies, as the government's understanding was that crypto could not be qualified as a financial asset.
The investigation examined the regulations in force in other countries and argued that a much stricter regime was needed in India. It recommended:
“Global standards need to be comprehensive and consistent; regulatory responses must be based on standard taxonomies, reliable data to address contagion effects, and flexible enough to be adjusted in the future based on market developments and future international standards,”
The Business Standard also published remarks from those within the cryptocurrency industry which were a reaction to the Economic Survey. Ashish Singhal, who co-founded coinswitch, was in favour of the investigation. He said:
"While taking a cautious approach to cryptography, the Chief Economic Advisor suggested that regulators could view centralized intermediaries as a system-wide infrastructure of capital markets. This contrasts with fearmongering calls to ban or simply to wish for the abandonment of cryptography. As indicated by the investigation, a common approach is needed to regulate the crypto ecosystem. Our hope is that India will also go that way and not take regressive steps on cryptography.”
Edul Patel CEO and Co-Founder of Mudrex was quoted as saying:
“Effective regulation is crucial for fostering innovation and combating money laundering and fraud. As cryptocurrencies are global, India cannot regulate them on its own, and calling for global standards that can be adapted to future international standards is a step in the right direction.”
He added:
“With India holding the presidency of the G-20 summit this year, the topic of cryptocurrency is also being discussed among the member countries. This is an opportunity for India to set the tone for world cryptocurrency regulation."
