Indian Officials Announce Completion of Crypto Regulation Report as WazirX CEO Says Its “Too Soon”
- Finance Secretary of India says that crypto regulation report is ready, pending approval of financial minister.
- Nischal Shetty, CEO of WazirX, says that it is “too early” for regulation in the space.
The regulation of the cryptocurrency industry is not something to be taken lightly. This complicated and innovative industry has so many different terms, use cases, and policies to consider, which are considerations that India’s new financial secretary has included for the last year of deliberation. Now, the finance secretary has officially stated that the crypto regulation report for India is ready. Before the policies are implemented, they will require approval from the finance minister, which has been recently appointed by Prime Minister Narendra Modi.
The local media has already confirmed the completion of the report, thanks to an announcement from new finance secretary, former Secretary of the Department of Economic Affairs (DEA) Subhash Chandra Garg. Garg’s statements were made at an Associate Chambers of Commerce and Industry of India event on Thursday. PTI reported that the finance secretary said,
“We will submit it to the finance minister. Of course, once the approval is done, it will be made public.”
The inter-ministerial committee on cryptocurrency included representatives from multiple authorities in the region. Those authorities included the Ministry of Electronics and Information Technology, the Central Board of Direct Taxes, the Securities and Exchange Board of India, and the Reserve Bank of India (RBI).
Originally, this report was supposed to be ready for deliberation in July 2018, and Garg even explained back then that the committee was “fairly close” to reaching their goal. However, when nothing was announced, reports by Lok Sabha in December 2018 said that the Ministry of Finance claimed that the committee was exercising “due caution.” The Ministry added,
“It is difficult to state a specific timeline to come up with clear recommendations.”
By February 2019, the supreme court was notified that the recommendations by the committee were in the final stages of completion.
However, not everyone believes that this is the best time for the regulations on cryptocurrency to be approved, like Nischal Shetty. Shetty is the Chief Executive Officer for WazirX, and he commented that the people should have the chance to weigh in on these crypto regulations after the draft is made public. As said above, the finance secretary pointed out that the public would not see the policies until they are approved. Still, the CEO says that the industry is “a relatively new field,” which is what makes these comments so necessary.
Shetty does not believe that the regulations should be levied immediately, despite the fact that they are meant to protect investors from fraud and promote the growth of businesses. He added,
“I honestly think it’s too early to implement any regulation in this space. Every nation is working with drafts and recommendations with its industry participants. So, while the draft is good for the industry, it shouldn’t be implemented without trialing it out in a sandboxed manner.”
Along with these decisions, the Supreme Court of India will host the Crypto Vs. RBI hearing next month.