Cryptocurrency players finally blink; move towards adoption of regulation
July 24, 2023
Reportedly, there has been an increasing adoption of crypto among retail investors
From once being a favorite among young and mature traders, cryptocurrencies in the last one or two years seem to have lost its sheen, thanks to various governments’ decisions to impose a ban besides the endless numbers of controversies. But with the Financial Stability Board’s consultative report Regulation, Supervision and Oversight of Crypto-Asset Activities and Markets, it is believed one will finally be able to identify issues and challenges related to crypto asset activities, as well as potential gaps in regulatory, supervisory and oversight approaches. “The recent emphasis placed by Financial Stability Board (FSB), an international platform, on G20, 2023, regarding the regulatory framework for crypto-assets might convert into a conducive policy framework for supporting the growth of this high potential sector,” Dilip Chenoy, chairman, Bharat Web3 Association, a Web3.0 platform, told FE Blockchain. Chenoy added that the developments might foster an environment for collaboration, ensuring that India remains at the forefront of technological adoptions.
The FSB proposes nine high-level recommendations to regulate, supervise and oversee crypto asset activities and markets. These include cross-border cooperation, regulatory powers, governance, comprehensive oversight, risk management, data management, compliance before operation, redemption of rights and stabilising mechanism, recovering and resolution planning. Eventually, it expects to focus on safeguarding client assets and managing conflicts of interest. These regulations have been created on three principles which include; same activity, same risk, same regulation, high-level flexibility and lastly being technology neutral. “Crypto assets adoption in the last few years has increased well beyond the innovator’s stage in emerging economies such as Nigeria where Bitcoin penetration has been phenomenally high. El Salvador is the first country to deploy Bitcoin as a legal tender. Apart from these many small and large countries are piloting CBDCs,” Avinash Polepally, senior director, crypto tax business head, Cleartax, a tax filing platform, explained.
Add to that, cryptocurrency platforms have bettered crypto-tax guidelines, in sync with government guidelines, thereby trying to legitimise currency investment. Use cases such as CoinDCX, an Indian crypto company, in collaboration with KoinX, a crypto taxation platform, will be providing an infrastructure that enables users to file their taxes along with access to KoinX’s easy-to-use crypto tax calculation and reporting. “ The introduction of tax structures or tax-related subscriptions by crypto platforms is a positive sign for the Indian crypto ecosystem on the whole,” Roshan Aslam, co-founder, CEO, GoSats, a web analytics platform, explained.
Currently, the cryptocurrency market capital stands at $29,802.94 billion, as per insights from CoinMarketCap, a market research platform. Looking ahead, the future of crypto assets is expected to hold transformative potential with the help of mainstream adoption, scalability improvements, advanced innovations, and continued regulatory developments that do not impede technological progress.
Furthermore, “The crypto assets landscape of possibilities is vast and unexplored, with a multitude of innovations waiting to emerge. It can be anticipated that a continuous stream of groundbreaking developments might take place in the future. The potential for growth and progress is immense, and it is great to be a part of this dynamic and evolving ecosystem,” Mridul Gupta, COO, CoinDCX, a crypto exchange platform, concluded.
[The Financial Express]
