After the central bank banned banks from servicing crypto exchanges, a few of them moved to P2P platforms to enable crypto-rupee trading. Shaikh Zoaib Saleem asks experts if P2P is the future for such trades Himanish Chaudhuri, partner, Deloitte India Regulations around crypto need to evolve In the wake of Reserve Bank of India’s (RBI) directive to banks and other RBI-regulated entities to suspend all transactions with crypto exchanges, effective 5 July 2018, crypto-rupee trades have taken a hit.
We have been witnessing a few alternative practices in the Indian market, where peer-to-peer or P2P models are adapted to make crypto transactions possible. It is pertinent to note that the committee constituted by the finance ministry to develop a framework to regulate crypto currencies is expected to come out with its report in July.
While the industry in India has started responding with alternate models to deal in crypto currencies, they should ensure that these models do not violate the regulations in any manner. Currently, the regulatory environment is still emerging and it will be important to watch the developments in the committee report.
Globally, as well, there are varied regulations on crypto currencies ranging from non-acceptance to conditional acceptance. Hence, the regulatory framework needs to evolve to clearly define the level of acceptance and need to be comprehensive enough to clearly articulate the expectations from banks and financial institutions, crypto currency exchanges, fintech companies evolving in the industry and, last but not the least, protection of investors.
Rashmi Deshpande, Associate Partner, Khaitan & Co Govt unlikely to make crypto assets illegal The crypto currency market in India has grown by leaps and bounds in the last few years. Even though trading in virtual currencies has reached $3.5 billion worth of transactions, there is still lack of a legal framework to regulate the market. Read more from livemint.com…
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