This is the first time that the committee has invited industry stakeholders to formally have a discussion on the industry.
A parliamentary committee on finance is likely to hold a meeting of top stakeholders of the crypto industry on Monday, according to multiple reports.
The meeting, reported to be a closed-door one, will have participants from top crypto exchanges, members of the Blockchain and Crypto Assets Council (BACC) among others.
This is the first time that the committee has invited industry stakeholders to formally have a discussion on the industry.
It also comes days after Prime Minister Narendra Modi chaired a meeting on the way forward for cryptocurrency amid concerns over its misleading claims of huge returns on investment.
According to multiple news agencies, the government made a consensus that “attempts to mislead the youth through over-promising and non-transparent advertising have to be stopped.” “The government is cognizant of the fact that this is an evolving technology, it will keep a close watch and take proactive steps.
There was also consensus that the steps taken in this field by the government will be progressive and forward-looking,” news agency PTI reported on Saturday.
It further said that the government will continue to speak to experts and other stakeholders of the industry on the issue. Since the issue cuts across geographical borders, the government also felt that it will require global partnerships and collective strategies.
Saturday’s meeting was an outcome of a consultative process as thec(RBI), Union ministry of finance, the home ministry did an elaborate exercise in which global and Indian experts were consulted and global examples and best practices studied.
On Wednesday, RBI Governor Shaktikanta Das reiterated his views against allowing cryptocurrencies saying they are a serious threat to any financial system since they are unregulated by central banks.
The Supreme Court in early March 2020 nullified the RBI circular banning cryptocurrencies. Following this on February 5, 2021, the central bank had instituted an internal panel to suggest a model of the central bank’s digital currency.
RBI announced its intent to come out with an official digital currency, in the face of the proliferation of cryptocurrencies like Bitcoin about which the central bank has had many concerns.
Parliamentary committee invites crypto players to discuss challenges of the industry
The Parliamentary Standing Committee on Finance has invited cryptocurrency players to discuss the opportunities and challenges of the industry.
The meeting has been scheduled for November 15.
“Hearing of views of Associations/Industry experts on the subject ‘CryptoFinance: Opportunities and Challenges’,” stated the Lok Sabha Secretariat in the agenda.
The meeting will start from 3 pm onwards.
Sources of the panel told BusinessToday.In that participants from CII, exchanges, various associations, experts and other stakeholders have been invited for the discussion.
The government will listen to their opinions.
The meeting has been called so that industry players can provide a perspective on what has been happening in the area of cryptofinance.
Sources say that all areas of the same will be covered.
This comes after BusinessToday.
In reported that a legal framework to regulate and govern the cryptocurrency investment market in India may be announced by next general Budget by February.
The proposed framework is likely to veer away from an earlier approach that had proposed a complete ban on cryptocurrencies.
Instead, the government is likely to opt for regulating cryptocurrencies as an “asset” class, somewhat on the lines of commodities, with appropriate taxation of transactions and gains.