Modi govt may set new panel for Cryptocurrency. Will regulation help Bitcoin, Dogecoin and other investors? 

Cryptocurrency India. Representative image

Even as there are a lot of uncertainties around the future of cryptocurrency in India, the crypto industry is happy over reports that the Government of India may soon set up a new panel to decide on Cryptocurrency regulation in India. Until now, the government has not clarified its stand on cryptocurrency while some reports have earlier suggested the government was planning to introduce laws to completely ban cryptocurrency trading in India.

Even on the floors of the Parliament, the government’s stand on cryptocurrency has been disappointing for the evolving crypto industry in the country. Amid these, the latest reports on the regulation of the cryptocurrency sector have provided fresh hope to all stakeholders in the crypto sector.

According to Avinash Shekhar, Co-CEO of ZebPay, the government setting up a panel will be a step in the right direction. “We believe that the government will consult with all stakeholders and take a calibrated approach in regulating cryptos in India and ensure all investors who have invested in cryptos are protected,” Shekhar told FE Online.

Sharat Chandra, Blockchain Expert, IET Future Tech Panel, said India’s crypto ecosystem has definitely come of age. With more than 1.5 crore retail investors holding digital assets worth 15,000 crores, crypto is definitely a force to reckon with.

Also read | Decrypting Cryptocurrency: Is this the right time to invest in Bitcoin and others?

“The crypto community has always spoken, in unison, about their willingness to be regulated. In the absence of regulation, the cryptocurrency industry stares at an uncertain future,” said Chandra.

Commenting on the recent bloodbath in crypto markets, which spooked many first time crypto investors and raised concerns about investor protection, Chandra said, “Once crypto exchanges start embracing governance and investor protection guidelines, meant for stock exchanges, risks associated with volatility can be fairly addressed.”

“There has to be a well-defined regulation with respect to cryptocurrencies. Regulation with adequate investor protection and compliance would augur well for the crypto industry. It remains to be seen how the newly constituted government panel views digital currencies- as an asset class, commodity, utility or otherwise,” he added.

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