The First Parliamentary Committee on the Fast-Evolving Alternative Currency stated that cryptocurrencies cannot be stopped, but should be regulated. The Standing Committee on Finance, chaired by Jayant Sinha of BJP, today met representatives of crypto exchanges, Blockchain and Crypto Assets Council (BACC), industry bodies and other stakeholders to discuss concerns regarding regulation and promotion of cryptocurrency in India. Of. There have been a lot of concerns from various quarters regarding the investment potential and risks around cryptocurrency in the country.
It was agreed in the meeting that a regulatory mechanism should be put in place, although it is not yet clear who should be the regulator.
The most serious concern expressed in the meeting was the safety of investors’ money. Another MP expressed concern over full-page crypto ads in national dailies. Experts said that cryptocurrencies are a kind of investor’s democracy. It is part of blockchain technology.
The panel meeting assumes significance as a few days back Prime Minister Narendra Modi chaired a high level meeting with officials of various ministries and RBI on the issue of cryptocurrencies.
“We have called upon stakeholders from the entire industry including operators of major exchanges, members of CII as well as academics from Indian Institute of Management (IIM) Ahmedabad who have done a very thorough study on crypto finance,” Sinha said. News agency PTI ahead of the meeting.
The MPs now want government officials to appear before the committee and address their concerns. The official agenda of the meeting, circulated to member parliamentarians, was “hearing the views of associations/industry experts on the topic – Crypto-Finance: Opportunities and Challenges”.
A Member of Parliament pointed out that El Salvador is the only country to recognize cryptocurrency as legal tender.
The Finance Ministry has already held several meetings with stakeholders to discuss the issue of regulation. The Reserve Bank of India and the Securities and Exchange Board of India have also expressed concerns about the uncontrolled growth of cryptocurrencies in India, taking into account vulnerable retail investors.
“On crypto… we have serious concerns from the point of view of macroeconomic and financial stability. How to deal with this issue – we have given our detailed suggestions to the government; as far as I know, the matter is under active consideration of the government , and the government will decide,” RBI Governor Shaktikanta Das had said at a Business Standard event on Wednesday.
In early March 2020, the Supreme Court struck down an RBI circular banning cryptocurrencies.