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On the news of a potential ban of cryptocurrency in India:
1. Let's wait for the text of the Bill. It's not clear that it will be the same as the draft Bill proposed by the committee. That draft Bill was overbearing and arguably unconstitutional. My piece: https://bit.ly/3cqIzFy
1. Let's wait for the text of the Bill. It's not clear that it will be the same as the draft Bill proposed by the committee. That draft Bill was overbearing and arguably unconstitutional. My piece: https://bit.ly/3cqIzFy
2. The name of the Bill is different from the draft Bill, since it excludes the word 'banning'; so there is a chance the Bill may be less extreme than the draft Bill. But based on the short description we have, there is a good chance that it will try to ban at least some trading.
3. This is worrying since lakhs of law-abiding Indians have invested crores of rupees in crypto-assets and many - including talented software developers - are employed by the ecosystem. The SC has recognized that trading in crypto-assets is protected by the Constitution.
4. An outright ban is likely to infringe the fundamental right to do business and the constitutional right to hold property. It is unclear from the draft Bill whether crypto-asset holders will be compensated by the State in any manner or how they are to dispose of their holdings.
5. The world has shown that there are multiple avenues to regulate this ecosystem without resorting to a ban. We had made some regulatory suggestions to fit the Indian context.
Tl;dr: Make exchanges and intermediaries subject to KYC + a licensing regime
https://media-exp1.licdn.com/dms/document/C561FAQHxyqTcU7agmQ/feedshare-document-pdf-analyzed/0/1600411407475?e=1612116000&v=beta&t=dU3bmPBJl2KcJkUe1Nu8sNDxBqaBL5LToKfWtsi2-xQ
Tl;dr: Make exchanges and intermediaries subject to KYC + a licensing regime
https://media-exp1.licdn.com/dms/document/C561FAQHxyqTcU7agmQ/feedshare-document-pdf-analyzed/0/1600411407475?e=1612116000&v=beta&t=dU3bmPBJl2KcJkUe1Nu8sNDxBqaBL5LToKfWtsi2-xQ
6. The next logical step has to be to urge Parliamentarians to refer the Bill to a Standing Committee, Select Committee or Joint Committee so they can consider the Bill in detail and opine on its constitutionality before proceeding in haste.
7. There's no need for India to be out of step with the world on this. Crypto-assets are a platform technology like the Internet, and like all platform technologies, have benefits and risks. The global solution is to regulate by mitigating the risks and preserving the benefits.
