FM says India is discussing need for crypto regulating SoPs, community rejoices

Cryptocurrency may not have been a topic of discussion in the recent budget, but as always it can’t be ignored for long.

During the question hour in Lok Sabha on the 13th of February, 2023, Finance Minister Nirmala Sitharaman said that India is in talks with the G-20 member countries about the need for forming a standard operating protocol (SoP) for regulating crypto assets.

“In the G20, we’re raising it (crypto regulation) & having detailed discussions with members so that a standard operating protocol emerges which results in a coherent, comprehensive approach where all countries work together in bringing some regulation,” she said.

The statement is being met with a lot of enthusiasm and expectation by the cryptocurrency community. With India ranking fourth in the global crypto adoption index, experts say there is a urgent need for regulations to protect the interest of millions of users in the ecosystem.

Shivam Thakral, CEO of BuyUcoin, India’s second longest-running crypto exchange, says India needs strong crypto regulations more than any other nation in the world as the country is witnessing the mass adoption of digital assets in India at an exponential rate.

India needs strong crypto regulations more than any other nation in the world as the country is witnessing the mass adoption of digital assets in India at an exponential rate
Shivam Thakral, CEO of BuyUcoin

“The power of blockchain is capable of driving the next financial revolution in the world with India playing a key role in its success. We applaud the efforts of our honourable Finance Minister to foster the culture of growth and innovation in India’s Fintech space. Young Indian entrepreneurs are looking at our FM with a lot of hope and see their hard work translating into meaningful businesses with a healthy policy framework around blockchain and digital assets.”

Some experts are also saying that when it comes to crypto policy making, the fine print will matter. Dhruvil Shah, SVP of Technology at Liminal

Tarusha Mittal, COO, and Cofounder of UniFarm and Dapps:

“We are delighted to see that our honorable Finance Minister is actively involved in creating a global consensus for a policy framework around digital assets. India is a tech superpower and it should lead the world into the Web3.0 space as it has the potential and the resources to be the blockchain capital of the world, if nurtured with business-friendly regulations.

“India’s robust technical infrastructure and skilled workforce are capable of driving the mass adoption of Web3-related products and services. I strongly believe that India needs to accelerate the creation of a strong and impartial policy to support the growth of the crypto ecosystem in India. Web3 is the tech of the future and India does not want to be left behind.

, a digital wallet infrastructure platform, strongly believes that regulators must take a nuanced approach to regulate crypto-related products and services.

One policy for all may not work for India’s diverse digital asset industry
Dhruvil Shah, SVP of Technology at Liminal

“One policy for all may not work for India’s diverse digital asset industry. Crypto awareness and adoption can only come if there is a suitable environment provided by the government for the industry. While the current Indian environment may seem unfavourable for crypto institutions, it is surely a start wherein the Government is actually acknowledging crypto and digital assets.

“In fact, Nirmala Sitaraman, during her address at the G20 summit, indicated that India is aiming at developing standard operating procedures for cryptocurrency, underlining that all countries want the technology to survive but not be misutilised.

“Crypto entrepreneurs, too, on their part, are educating the users on the functioning and usage of crypto-related products and services. Still, due to a lack of regulations, awareness about crypto has not yet broken the glass ceiling.” he says.

Tarusha Mittal, COO and Co-founder of UniFarm and Dapps, too says that India needs a strong and impartial policy to support the growth of its crypto ecosystem.

I strongly believe that India needs to accelerate the creation of a strong and impartial policy to support the growth of the crypto ecosystem in India
Tarusha Mittal, COO and Co-founder of UniFarm and Dapps

In December, RBI Governor Shaktikanta Das warned about the unregulated currenc and said that it presents a “huge inherent risk for our macroeconomic and financial stability”. He also said, “the unchecked growth of private cryptocurrencies could lead to a financial crisis”.

In May, Finance Minister Nirmala Sitharaman said that India will not rush into any decision on cryptocurrencies and will take a ‘well-considered view’ after proposing a 30% tax on income from crypto and NFTs in the Union Budget.

Navanwita Bora Sachdev

Navanwita is the editor of The Tech Panda who also frequently publishes stories in news outlets such as The Indian Express, Entrepreneur India, and The Business Standard