- The lack of robust laws or policies to guide the growth of crypto in India leaves enthusiasts with frightening thought of the Parliament probably taking steps towards banning crypto altogether.
- In a bid to prevent this, American startup, Ripple, and largest custodian of XRP released a policy paper to guide digital assets legislation in the country.
India’s blockchain and digital assets industry is currently in limbo as the uncertainty rises from the country’s regulators’ view on crypto assets. Despite the Supreme Court of India ruling in favor of lifting the “unconstitutional” draconian ban on crypto by the Reserve Bank of India (RBI), the authorities are yet to draft a legal document regulating digital asset ecosystems.
“The Path Forward for Digital Assets Adoption in India”
The paper (titled as above) proposes short and medium-term policy frameworks to lawmakers in India in a bid to boost the overall development of blockchain and digital asset solutions in the country. The paper is filled with Ripple settlement networks and XRP advertisements but still offers a clear path on India coming into the global play in regulating the digital asset taxonomy.
In a statement on the release of the policy framework Sagar Sarbhai, Ripple’s Head of Government & Regulatory Affairs in the APAC region said:
“India is currently presented with an opportunity to develop a regulatory framework for a native digital assets ecosystem. We are optimistic about that after careful deliberation and consultation with industry participants.”
The draft submitted to the Indian legislation employs a “technology-agnostic, principles-based, and risk-adjusted” framework to provide a crisp and clear guidance structure in India.
Short and Medium-Term Plans
Ripple’s paper also offered short and medium-term plans for the Indian legislators, including attracting talent to the Gujarat International Finance Tec-City (GIFT) by drafting a short term digital asset framework for service providers.
The proposal focuses on the development of enterprise use cases for digital assets such as XRP. The paper further touted XRP’s potential in solving the cross border settlement problems across the region.
Furthermore, the paper also calls for the removal of digital assets, cryptocurrencies, and services arising from the “negative listing” in the RBI fintech regulatory sandbox framework. This allows developers the needed freedom to innovate and test their networks within a safe, regulated space. Navin Gupta, Ripple’s managing director in Asia, said:
“Under a clear regulatory framework, individuals and businesses can confidently take full advantage of and operate within a safe environment that encourages the use of innovative technology.”
The digital asset field in India is begging for a regulated platform with exchanges in the country recently approaching the central bank regarding taxation clarity.