India is to introduce new measures around the cryptocurrencies and their usage, said Ajay Seth, the Economic Affairs Secretary of India.
It was on Saturday when Ajay Seth talked about introducing stricter measures for cryptocurrencies. He made the statement in Mumbai during the post-budget press conference.
According to Seth, stricter measures and conditions may be introduced around cryptocurrencies in the year 2023.
Statement by Ajay Seth
The secretary stated that cryptocurrency and blockchain technology has proven to be very attractive to the entire world.
People in India are fond of technology and they are adopting them like no other technology. They know that technology offers them profits and money, and has the potential to improve their lifestyles.
This is the reason why people are adopting the technology but what they are not realizing are the risks. On one hand, technology offers them an opportunity and a chance at improvisation.
On the other, technology is full of risks and dangers, so users must remain cautious and vigilant. Unfortunately, technology has made its place in the financial system.
People consider it to be the future of finance and an alternative to traditional finance, providing them ownership over their personal/financial information.
The decentralization offered by the crypto-blockchain technology is the major selling point for the industry. This is exactly what has brought in a lot of adoption towards the crypto-blockchain industry.
The more people adopt technology, the riskier things are becoming for their economy. This is the reason why their government has to intervene and streamline the crypto-blockchain sector.
They have to make it adaptable and convenient for the locals, which is why it is extremely important that cryptocurrencies are regulated.
There are many discussions among the regulators and the government to regulate cryptocurrencies.
They are also aiming to devise preventive measures for the risks involved with cryptocurrencies.
Perception of Cryptocurrencies in India
Seth also added that the perception in India about cryptocurrencies is different from the rest of the world.
The people in India do not consider using cryptocurrencies as a currency. People are not considerate of using cryptocurrencies as a mode of payment.
Instead, they are happy with the idea that cryptocurrencies are just tokens and that is where the risks arise. This is where things become very difficult for the government as the risk is constantly growing bigger in the country.
For a long time, the government of India has worked on the regulations of cryptocurrencies. To achieve this, they have worked hard on introducing legislation around cryptocurrencies.
This way, they are trying hard to make things right for their economy and for their citizens. It was in 2019 when the Reserve Bank of India launched its campaign against the adoption of cryptocurrencies.
It opposed the very concept of cryptocurrencies and since then, has strived to get them banned.
Even today, when governments have decided to adopt cryptocurrencies in a regulated manner, the RBI has continued opposing them.
However, bound by the government’s decision, the RBI has no choice but to ensure that the cryptocurrencies are made safer and regulated for the locals.
RBI’s Pitch at the G20 Countries’ Conference
The RBI is very serious and concerned about the local adoption of cryptocurrencies.
It wants the cryptocurrency industry to be fully regulated and has raised the point at the G20 Countries’ conference.
It was the RBI that hosted the recent G20 Countries’ conference and there, it raised several concerns about cryptocurrencies. The major concerns were pertaining to money laundering and terrorist funding.
It pitched that global legislation must be introduced for cryptocurrencies. This way, the entire world will be on the same page when it comes to the adoption and regulations of cryptocurrencies.
So far, what the RBI has raised has been heard by regulators from around the world.
If not all the regulators come on board with the RBI, the European, Singaporean, Gulf, and American regulators may come on board with the regulator.