Bitcoin Regulation Making Its Way To India
Yeah! you heard us right. Bitcoin regulation in India is soon to happen. The Bitcoin winds are stirring everybody in India. From the tech savvy younger generation to the citizens not trusting the national currency to the Government and the tech giants, everyone is either investing in or researching about cryptocurrency.
The Indian Governments inquisitivity regarding Bitcoin is evident with the Department of Economic Affairs forming an interdisciplinary committee to examine the framework surrounding cryptocurrencies like Bitcoin. Formed in April, it comprises of members such as the central bank of the country. The committee is expected to deliver its report by July. Not just a committee but discussion on its forum MyGov has also been launched. The main purpose of the discussion is to gain the public opinion on cryptocurrencies.
The Government’s efforts to consider expanding its currency base digitally, has been warmly welcomed by borh bitcoin investors and companies. A discussion like this will allow all parties to address concerns over the risks associated with the use of the cryptocurrency. This might lead to the official introduction of cryptocurrency in the country with better regulation and improved security detail.
So far, the discussion has broadly been governed by participants either evaluating Bitcoins role as a major player in the financial system of India in the coming years or expressing their concern over the reliability of the system regarding the reports connected to money-laundering.
Hesham Rehman, CEO and co-founder of Bitxoxo however has confidence in the fact that “there is nothing corrupt about cryptocurrencies – they enable direct transactions with no third-part interventions’ as he told Forbes.
Despite all these concerns, the number of bitcoin investors has significantly risen to almost 600,000 in India as was reported last November. Until 2013, Bitcoin was fairly unpopular in India. However today, Bitcoin has a quickly expanding customer base in India along with a rising investor confidence. Indian cryptocurrency firms seem to grow their customer base by constantly proving the trustworthiness of their respective platforms. These firms often request documents like government issued ID and Permanent Account Number (PAN), to ensure the security of their platform.
The chief technology officer (CTO) and founder of Coinsecure, Benson Samuel believes “These are expensive but necessary steps. By improving our infrastructure, current customers are assuaged and future customers are confident.”
Principal at Mumbai-based Blume Ventures, Arpit Agarwal stated that
“Some financial investors are rightfully cautious about investing in this space due to lack of regulatory clarity. But, the government is working with private players to sketch regulatory frameworks that boost innovation as well as ensure the safety of the platforms.”
The Digital Assets and Blockchain Foundation India (DABFI) was formed by various companies in India to educate the citizens of the country about cryptocurrency and propagate the best industry methods for business. Rashmit Gupta, whose company Search Trade is founding member of DABFI, said that the foundation aims “to create more confidence among the public to use Bitcoin, and eventually increase the use of digital tokens more effectively.”
With adequate support and an in intricate framework from the Goverments side, Bitcoin’s future seems to be promising in India. This would lead to an expansion of the service providers in India. Where the current applications of cryptocurrency involve in-app mobile phone purchases and gift vouches, tech giants are estimating the implementation of bitcoin to the financial sector. This would offer a perfect solution to India’s unbanked population.