Across the globe, the crypto markets have seen an exponential rise in market capitalization and the number of users. The International Monetary Fund, in its Global Financial Stability Report (October 2021), notes that the global market capitalization for cryptoassets tripled in 2021. India is also witnessing an increase in the market size for cryptoassets with funding and blockchain investments going up to $638 million in 2021, as per reports. However, the market has also witnessed extreme volatility. While many remain optimistic about the underlying technology of cryptoassets (i.e. blockchain), policymakers remain cautious of risks associated with cryptoassets.
The history of cryptoassets in India has been tumultuous starting initially with a ban by the Reserve Bank of India on the dealing of “virtual currencies” to the recent discussions on the possibility of regulating cryptoassets. The much-awaited cryptocurrency bill in the Parliament has left the entire country speculating about the policy direction of the government on cryptoassets. India is not alone. Globally several countries are intensely debating on the appropriate response to cryptoassets regulation.
With varied regulatory responses, several pertinent questions come to the fore such as whether to ban or regulate cryptoassets? Which all cryptoassets would be regulated? Which entities and what activities would be regulated? Who would be the regulator? Vidhi’s upcoming working paper “Blueprint of a Law for Regulating Cryptoassets” seeks to unearth these important issues and present a blueprint of a law to regulate cryptoassets in India.
This discussion brings together domain experts to discuss how an effective framework can be designed to promote responsible innovation in the crypto economy as well as counter the risks posed by cryptoassets.
- Anu Tiwari, Partner and Co-Head Fintech, Cyril Amarchand Mangaldas
- Pramod Rao, Group General Counsel, ICICI Bank
- Sriram Chakravarthi, Partner, Rajah & Tann Singapore LLP
Shehnaz Ahmed, Lead, Fintech, moderated the event.