Mumbai: Legal experts are divided into arranging crypto assets.
While one section advised the government not to make hasty decisions without understanding use cases, others opposed sustainable status quo despite having difficulty defining Crypto.
The ICICI Group of Advice Bank General Pramod Rao said, “Pause the government (about introducing the Crypto Bill in Parliament) is a good thing for us to wait and watch, and decide whether we need a separate regulator, which can exceed all cases of use.” However, partners Cyril Amarchand Mangaldas Anu Tiwari said it would take several years for a new regulator to reach maturity – which was too long for Crypto.
According to Tiwari, Sebi is a practical choice for regulating crypto even though there are challenges such as identifying Token issuers.
Law experts spoke in a webinar organized by Vidhi Center for legal policy on Saturday.
According to RAO, regulations are intended to have transparent rules that are generally applied.
One cannot expect regulation into a safety net for investors.
Rao said he was being accounted for the domestic Crypto industry to continue to increase the level of disclosure.
Rao also said that in the case of regulations, the application of several existing laws must be considered.
“Crypto trading may have been contrary to exchange control norms under FEMA (Act Management of Foreign Exchange),” he said.
Sriram Chakravarthi, partner at Singapore-based law firm Rajah & Tann, also said the status quo could not continue.
“It’s better to have a constant evolutionary process, consultation and then appear with guidelines, etc., and see how they work than the wait-and-watch approach,” said.
Rao said that sebi was more in line to set the stablecoins – cryptocurrency categories related to the underlying assets such as gold or dollars.
Crypto is produced by an automatic algorithm.
“What is the developer – the creator of the algorithm – do you want to be responsible? What if they are not in India?” Rao asked.