Cryptocurrency cannot be stopped but must be regulated, the first parliamentary panel meeting to discuss the broader form of cryptocurrency was unanimous. The Standing Committee on Finance, chaired by BJP’s Jayant Sinha, today met with the Crypto Exchange, Blockchain and Crypto Asset Council (BACC), industry bodies and other stakeholders to discuss concerns over regulation and promotion of cryptocurrency in India. There is a lot of concern from various quarters about the potential and risk of investing in the vicinity of cryptocurrency in the country.
There was a consensus in the meeting that a regulatory system should be established, although it is not yet clear who the regulator should be.
At the meeting, investors were most concerned about the security of their finances. A member of parliament who was part of the meeting expressed concern about the full-page cryptocurrency advertisement in the national daily. Experts say that cryptocurrency is a kind of investor democracy.
The panel meeting comes days after Prime Minister Narendra Modi chaired a high-level meeting with various ministries and RBI officials on the cryptocurrency issue.
“We have invited stakeholders across the industry, including the major exchange operators, members of CII, as well as academics from the Indian Institute of Management (IIM) Ahmedabad, who have done a thorough study on crypto finance,” Mr Sinha said. News agency PTI before the meeting.
MPs now want government officials to appear before the committee and express their concerns. The official agenda of the meeting, which was circulated to the Member of Parliament, was “Hearing the views of the Association / Industry Experts on the issue – Crypto-Finance: Opportunities and Challenges”.
Another MP noted that El Salvador is the only country that recognizes cryptocurrency as a legal tender.
The finance ministry has already held multiple meetings with stakeholders to discuss the issue of control. The Reserve Bank of India and the Securities and Exchange Board of India have also expressed concern over the uncontrolled growth of cryptocurrencies in India, citing weak retail investors.
“In crypto … we have serious concerns from the point of view of macroeconomic and financial stability. How to deal with the problem – we have given our detailed advice to the government; Said at a Business Standard event on Wednesday.
In early March 2020, the Supreme Court quashed the RBI circular banning cryptocurrency.
An MP who attended the crypto-finance meeting today indicated that the government was planning to introduce a new bill to regulate cryptocurrency.
New bills may be introduced in the winter session of Parliament starting November 29, 2021.