A parliamentary panel, chaired by BJP leader Jayant Sinha, on Monday discussed the pros and cons of crypto finance with various stakeholders, and several members were in favour of regulating cryptocurrency exchanges rather than imposing an outright ban on new-age currencies, according to sources. The meeting took place against the backdrop of rising concerns in various quarters about cryptocurrencies and the possible risks emanating from trading in them, especially when there is a growing interest in such assets worldwide. Currently, there are neither specific regulations nor an outright ban on the use of cryptocurrencies in the country.
Heads of cryptocurrency exchanges and members of the Blockchain and Crypto Assets Council attended the meeting. Representatives of industry bodies, including CII, and other stakeholders were also present. They made their submissions on crypto finance to the panel. During the meeting, members of the Parliamentary Standing Committee on Finance cautioned the representatives present that cryptocurrencies, which are attracting more investors, should not go the way of ponzi schemes, the sources said.
Ponzi schemes lure people into investing in fraudulent money pooling activities by promising high returns. Showing a full-page advertisement of a crypto exchange in a national daily, a panel member from an opposition party said that cryptocurrency players should not give misleading advertisements to lure easy money from youngsters.
The sources said that there was a broad understanding at the meeting that cryptocurrencies cannot be left unchecked and some kind of regulation was required. However, several members were not keen on imposing an outright ban on such currencies, they added. From the industry side, Naveen Surya, Chairman of Fintech Convergence Council, Ashish Singhal, CEO of Coinswitch Kuber and Sumit Gupta, CEO of CoinDCX, were among those who participated in the meeting.
Industry representatives were in favour of regulations but there was no clarity on whether RBI, Sebi, or any other new institution should regulate the cryptocurrency industry, the sources said. Several MPs in the meeting pointed that cryptocurrency is gaining attraction like Ponzi schemes did in their earlier days and suggested that it should not go the same way, sources said.
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