Indian government invites law firm to present suggestions for crypto regulation
After the Indian law firm Nishith Desai Associates has presented their suggestions for the crypto regulation to the government, the authorities invited them to officially participate in the dialogue connected with the upcoming regulation. Among the main proposals on the agenda are prohibition avoidance, taking a balanced approach, licensing options, as well as self-regulation in the industry.
The government committee responsible for the crypto regulation in India is led by the Secretary of Economic Affairs, Subhash Chandra Garg. According to lawyer Jaideep Reddy, the paper was presented “in an independent capacity and purely in public interest.”
One of the main focus points of it is “regulation not prohibition” rule. Additionally, the paper cites possible restrictions placed on the cryptocurrency industry as “counterproductive.” One of the main points the law firm also focused on throughout the report is licensing. According to Reddy, it could be implemented fairly simple. For instance, the government could introduce a simple regulation under the already-existing set of laws. That would bring Indian crypto businesses in compliance according to the requirements of the Anti Money Laundering (AML) laws.
One of the other examples cited in the paper is self-regulation of the industry, following the footsteps of Japan. The law firm Nishith Desai Associates advised the Securities and Exchange Board of India (SEBI) to regulate the security tokens, under the Companies Act.