Parliament on Friday said that policy on crypto assets and their ecosystem is the responsibility of the Ministry of Finance and all relevant laws will be passed through international cooperation after assessing the relevant risks.
“Crypto assets, by definition, have no borders and international cooperation is needed to prevent regulatory arbitrage. Therefore, relevant legislation can only become effective under the conditions of intensive international cooperation in the field of benefit-risk assessment, uniform taxonomy and the further development of standards," said the Minister of State. CFO Pankaj Chowdhury provided this information in his written response in the Lok Sabha.
He answered a question from BJD member Bhartara Mahtab on the current status of the cryptocurrency bill scheduled for Parliament's 2021 winter session and the timing of its billing and public debate.
Mahtab also wanted to know which department would regulate cryptocurrencies and crypto tokens, as well as other non-cryptocurrency virtual digital assets such as NFTs and decentralized applications.
Reserve Bank of India (RBI) Governor Shakktanta Das said at a recent event that allowing private cryptocurrencies to grow will lead to the next major financial crisis.
"Price changes of a so-called commodity are a function of the market, but unlike any other asset, our main concern with cryptocurrency is that it has no intrinsic [value]," Das said. "As a term, cryptocurrency is a good way to describe 100 percent speculative activity."
Das also noted that the recent FTX crash resulted in a market loss of about $40 billion. "After the FTX episode, I don't think anything else needs to be said."
(according to IANS)
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