Before that, it is essential to know that the government is actively preparing to develop a well-regulated crypto framework:
- On November 15, India’s Standing Committee on Finance held the first-ever parliamentary meeting devoted to crypto with academics and representatives from the crypto industry and other stakeholders, Times of India1reported.
- The meeting took into account the views of these people on the challenges and opportunities in crypto finance in addition to looking for ways to promote the industry in India.
- The panel unanimously agreed to develop a regulatory mechanism for virtual assets rather than banning them altogether. Although it was not clear who should be the regulator.
- Members of Parliament have shown consensus on banning full-page crypto ads that misrepresent and mislead people by exaggerating claims.
- Members of Parliament (MP) have expressed serious concerns about the safety of investors’ money.
- An inter-ministerial panel on cryptocurrencies chaired by the Secretary (Economic Affairs) recommended that all currencies, except those issued by the state, be banned.
- Members of the Parliamentary Standing Committee on Finance also expect government officials to introduce themselves and address their issues regarding the crypto industry.
- RBI Governor Shaktikanta Das has repeatedly expressed concerns about the unregulated crypto market.
- On November 16 during the SBI Conclave, the governor of the RBI raised suspicions about the authenticity of the cryptocurrency‘s current trading numbers and their claimed market value.
- He said investors are drawn into offering credit.
- Das clarified that while the value of cryptocurrency transactions and exchanges increases, the number of accounts is inflated.
- Das had previously claimed that the unrestricted use of cryptocurrency poses a threat to India’s macro-financial and economic stability and could create channels for money laundering and terrorist financing.
- In its entirety, the recent meeting aimed at a proactive, progressive and forward-looking approach to crypto as it is an evolving technology.
In addition to these developments, the government is also expected to present the cryptocurrency bill during this winter session of parliament scheduled for November 29 to December 23, according to a report by the Economic Times.
2. The bill would prioritize investor protection, as cryptocurrencies fall under a complex asset class category. Currently India has no cryptocurrency regulations in place and the earlier ban imposed by RBI was overturned in March 2020 by the Supreme Court.
- Additionally, India’s own central bank digital currency (CBDC) or digital INR is expected to pilot launch in the first quarter of next fiscal year, according to an ET report.
- In this regard, RBI had created an internal panel on February 5, 2021, to propose a model of CBDC.
Having known the details of the current and impending regulatory framework for cryptocurrencies in India, it is now imperative to recognize legitimate virtual assets. Here, the world’s only regulated cryptocurrency, the PNP coin, comes into the picture. Some of the characteristics of PNP coins as reported by Economic Times are:
- PNP coin uniquely offers physical and digital wallets.
- A physical PNP coin is known to be equal to 1,000 PNP tokens, which is given as a guarantee of insurance.
- It is backed by Helios Wealth Management.
- PNP should soon be enlisted in major international markets.
PNP claims to promote people’s confidence in the crypto market, in addition to ensuring market stability. According to Economic Times
3, it can address many of the concerns that the Indian government is currently concerned with about the crypto market in these ways:
- Investors must submit all necessary KYC information before receiving a wallet address.
- This small step ensures that crypto trading is monitored and reduces the possibility of illicit transactions.
- PNP tokens are awarded to users immediately, but only after meeting minimum KYC criteria.
- In order for this transaction to begin, users must provide their nominee information as well as their Aadhaar card, PAN card and banking information.
- Hopefully, this will be a safe bet for newbies looking for controlled and regulated digital assets.
- Financial experts expect PNP coin to be a stable and valuable asset
Investors believe that the strict regulatory framework followed by PNP has the potential to make it a desirable and secure investment choice in the crypto market.
- https://economictimes.indiatimes.com/news/economy/policy/reserve-bank-of-india-may-launch-digital-currency-pilot-next-year-says-new-report/articleshow/87779292.cms? de = mdr
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