The lobby has proposed that cryptocurrencies must be assigned the status of assets like gold and stocks
IndiaTech.org, an association that represents the interests of start-up founders and investors, has published a whitepaper arguing for the registration and regulation of local crypto businesses as opposed to the blanket ban that is being considered by the government.
The recommendation comes amid a massive online movement by the crypto community in the second most populated country in the world against India’s proposed law to impose a ban on trading, transacting, or even holding cryptocurrency in the country.
In a five-point policy framework, the lobby has proposed that cryptocurrencies must be assigned the status of digital assets like gold indices and stocks instead of seeing them as an alternative to cash.
The framework further recommends the establishment of a checks-and-balances system with well-defined reporting mechanisms, accounting standards to tackle suspicious activities, and enabling traceability of fraud transactions and terror funding.
IndiaTech.org has said that the framework has been created to address the concerns of the government with regards to cryptocurrencies while simultaneously enabling the crypto industry in India to capitalise on its potential. The whitepaper has been shared with the Ministry of Finance, Ministry of Commerce and Industry, RBI, and Niti Aayog.
“India with the right monitoring regulations in place can create an avenue to participate in wealth creation opportunities in this new asset class that can be like gold in the future for the generations ahead,” the group said in the whitepaper.
The framework also recommends both direct and indirect taxation of crypto and even asks the government to permit disclosures and regulate import.
Speaking about the significance of self-regulation in the crypto industry, the whitepaper encourages stakeholders to develop a code of conduct that will safeguard the interests of the consumers as a robust financial policy is developed by the government.
The report further said that “Allowing the crypto industry can also help India decrease the cost of capital for its SMEs and build an easier channel for them to provide their services to global customers.”
India, which has recently been hit by a damaging second wave of the COVID-19 pandemic, recently witnessed donations pouring in from all over the world after a cryptocurrency fundraiser for the country was set up. Since the reports of a possible crypto ban have emerged, the crypto community has not only suggested alternatives like the ones above but has also stepped up to show the benefits of crypto both in terms of a growth opportunity and during times of crisis.