RBI bats to prohibit cryptos but industry see a silver lining

economictimes.indiatimes.com:

Nirmala Sitharaman's written response in Parliament again brought the 'spotlight' to crypto assets or virtual currencies (VCs) as she called for 'global collaborations' to prohibit these assets. However, the industry, as always, is reading too much between the lines, taking out the positive for the industry with some silver lining for the stakeholders. "Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards," FM's reply said.

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However, one should remember that the Reserve Bank of India has always been a vocal critic of the private cryptos and called out to impose a blanket ban on them. RBI sees VCs as a potential threat to economic and financial stability. On the other hand, the industry believes that the government's stance on virtual currencies has softened, and it has no intentions to outrightly ban cryptos anytime soon. Khaleelulla Baig, co-founder and CEO, Koinbasket, said that the finance minister is playing safe by adopting a ‘wait-and-watch’ strategy. India is on the brink of losing the opportunity to become the crypto leader because of its hawkish stance. «The next wave of crypto adoption in India will be so impactful that the government would be compelled to legalize and regulate the Web 3.0 space concerning the larger