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HomeNewsOpinion: Banning Cryptocurrency Will Punish India - by Priyanka Chaturvedi

Opinion: Banning Cryptocurrency Will Punish India – by Priyanka Chaturvedi

Not too long ago, there was a bombardment of commercials round cryptocurrencies in newspapers and on billboards and digital media. The commercials explicitly faucet into the sensation of ‘Concern Of Lacking Out’ or ‘FOMO’, promising outrageous (1,000x) returns and creation of wealth in a single day, even for a primary-time investor. Is that this the truth? Have in mind the volatility of this area – a single tweet from Elon Musk can convey down the worth of Bitcoin, one amongst many currencies which are traded. However a naive investor, or any particular person eager to create fast wealth, would undoubtedly need part of this based mostly on the publicity, even it means coming into a market area that’s unregulated and ungoverned. 

The Parliamentary Standing Committee on Finance had an in depth dialogue with stakeholders on Monday and the Prime Minister then reviewed the matter alongside the Finance Minister and RBI, so there lastly appears a ray of hope that some construction can be introduced into this unregulated area. How will a construction assist India somewhat than a ban? It can create a safeguard for retail traders, the crypto firms based mostly in India won’t transfer out of India, so there can be no flight of capital, it should create a wholesome ecosystem for India and Indians to discover rising applied sciences and change into leaders and innovators on this area.

Bitcoin, Ethereum, Dogecoin, and so forth. are a few of the names which have change into widespread utterances as of late, specifically among the many youth. Once we say bombardment of advertisements, simply to quote the lately-held World Cup T20, there have been 51 cryptocurrency-associated advertisements per match for an advert spend of fifty crores, 10 hours of advertisements most focused at younger traders. This kind of blitz and glitz is certain to lift regulatory and governance issues with no coverage framework for the sector.

The three-trillion-greenback market has attracted traders from all around the globe, particularly retail traders. India is one in all many international locations which has not taken any clear stand on it. The Supreme Court docket in early 2020 had cancelled the RBI round banning cryptocurrencies. Since then, there was speak that the federal government will introduce laws on cryptocurrency however nothing concrete has been carried out as a result of India’s conservative strategy. Which is simply truthful, contemplating the uncertainty of the area. It locations round 15 million energetic subscribers on varied cryptocurrency exchanges with no security web. The ignorance, transparency and readability places the cash of the traders, most significantly, retail traders, in danger. This trade which holds a lot of capital shouldn’t be monitored or regulated in India and that must be the purpose from the place India’s coverage-making ought to start.

As the favored saying goes, “You may find it irresistible or hate it, however you can’t ignore it”. In line with trade estimates, the worth throughout varied crypto forex exchanges is pegged at an awesome 6 billion {dollars}, a quantity too humongous to look the opposite means for the federal government, contemplating the large financial affect it could have if it stays unregulated.

India can not and shouldn’t exclude itself from a 3-trillion-greenback market. A ban will solely create an underground parallel financial system, encouraging illegitimate use and can defeat the very function of the ban. Most significantly, it should additionally contradict the Draft Nationwide Technique on Block Chain, 2021 of the Ministry of Electronics and IT (MEITY), which hailed block chain know-how as clear, safe and environment friendly in placing a layer of belief over the web. One can not promote blockchain which is one a part of the know-how-pushed innovation whereas stifling its ancillary, crypto property as an alternative of forex, if you happen to might. 

A regulatory framework will handle the 2 key issues related to it – lack of transparency and unwarranted commercials selling dangerous behaviour. Regulation will shield traders and allow knowledgeable investments. Most significantly, regulation can support in monitoring the cash-laundering and terror-financing points and likewise forestall scams (the latest Bengaluru hacking case, Squid Sport forex rip-off, and so forth.). An environment friendly regulatory framework will present accountability as additionally a grievance redressal mechanism for traders. 

The US has been in favour of permitting all cryptocurrencies, Japan has permitted them, Singapore and Dubai appear to be the favorite for many, China has issued a blanket ban on all cryptocurrency transactions and mining, whereas the decision in India is but to come back. It turns into crucial for the federal government to convey ahead a laws that understands the imaginative and prescient of the know-how, takes under consideration the inputs of all stakeholders, and permits residents to get pleasure from the advantages that entail with this new-age know-how.

Because the winter session of parliament approaches, everyone seems to be watching and hoping that the federal government will introduce laws that addresses and resolves the issues of the stakeholders and regulates the rising market of cryptocurrencies. Until then, stakeholders, particularly crypto-traders ought to HODL (Maintain On For Pricey Life).

(Priyanka Chaturvedi is Member of Rajya Sabha and Deputy Chief Shiv Sena.)

Disclaimer: The opinions expressed inside this text are the private opinions of the writer. The information and opinions showing within the article don’t mirror the views of BoardingFlight and BoardingFlight doesn’t assume any duty or legal responsibility for a similar.


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