India emphasizes the need for a common approach to regulate the crypto ecosystem regulation

The Indian Ministry of Finance in its flagship Economic Survey has emphasized the need "of a common approach to regulate the crypto ecosystem". "Crypto assets are self-referential instruments and pass the test of being a financial asset, not strict because they have no intrinsic cash flows," said the Indian government.

The Ministry of Economics by the Ministry of Finance comprises crypto

The Indian finance minister Nirmala Sitharaman presented this in front of business survey in parliament on Tuesday. The Economic Survey is an annual flagship document of the Ministry of Finance that outlines the performance of the Indian economy in the past financial year and offers an economic outlook for the current financial year.

India's central bank, the Reserve Bank of India (RBI), also has that crypto has no inner value and adds that they represent risks to the country's financial stability. The RBI has recommended to ban cryptocurrencies such as Bitcoin and Ether.

The Economic Survey also notes that "US regulators have disqualified Bitcoin, Ether and various other crypto-assets as securities". However, the chairman of the US stock exchange supervisory authority Sec, Gary Gensler, has confirmed this bitcoin is one Goods but would not comment. Nevertheless, he emphasized the Most other tokens are securities.

The Economic Report of the Ministry of Finance then refers to A Common announcement on January 3. Federal Deposit Insurance Corporation (FDIC) and the Office of the Compotroller of the Currency (OCC) created, in which the concerns of the three authorities with regard to the risks that represent cryptocurrencies for the banking system were emphasized.

The survey continues:

The geographically omnipresent nature of the crypto ecosystem requires a common approach to regulating these volatile instruments. In this context, the global reaction to cryptos is developing.

The document continues to discuss the current regulatory approaches worldwide, including in the European Union, Japan, Switzerland, the United Kingdom, Albania and Nigeria.

"The monitoring and regulation of cryptocurrencies was difficult, and regulatory authorities around the world find it difficult to keep an overview of the new and emerging problems in the fast -moving, unknown area," adds the survey and states:

There are minimum standards for non-secured crypto-assets that are currently not reducing all risks and weaknesses.

The survey shows that standardization bodies have made efforts to adapt and develop standards for regulating crypto. However, they focus on certain topics or sectors. "Therefore, there are regulatory gaps in every phase when crypto-assets are output, transferred, replaced or saved," concludes the document.

India for several years to try a crypto guideline for several years develop. A draft of a crypto calculation was in July 2019, but was not included in the parliament. The finance minister previously said that the Indian government is planning to discuss the crypto regulation with the G20 members to discuss a target = "_ blank" href = "https://news.bitcoin.com/india-to-discuss-crypto-during-g20-presaTESTASH-TECH-TECH-DRIVEN-Regulatory-FrameWork-Says-Finance-Minister/" Rel = "noopener"> Technologie-drives Regulation framework for crypto-assets. Last month, the government presented its plan, a crypto consciousness program .

In the meantime, the RBI is testing its digital central bank currency (CBDC). A wholesale digital rupienpilot was launched in November last year, while a target = "_ blank" href = "https://news.bitcoin.com/rbibegins-first-retail-digital-pilot-in-13- indian-cities-cities-8-banks/" Rel = "noopener"> retail pilot began in December.

What do you think that the Indian government has included cryptocurrencies in this year's economic survey and focuses on a "common approach to regulating the crypto ecosystem"? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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