- Cryptocurrency firm Ripple has come out with a new policy paper that suggests a regulatory framework to help Indian authorities control crypto in the country.
- Underlining the need for digital assets like cryptocurrencies, Ripple tries to persuade Indian authorities to take a more balanced approach towards crypto.
- The policy paper recommends unbanning crypto and laying down a regulatory framework that empowers the Securities Exchange Board of India (SEBI) to license, regulate and supervise digital asset service providers like Ripple.
- In addition to this, Ripple also recommends allowing companies like itself to trade in the Gujarat International Finance Tec-City (GIFT City), to test out enterprise use-cases and apply them to the Indian context.
Cryptocurrency exchange Ripple has come out with a regulatory framework to keep India from banning cryptocurrencies — yet again
after the Supreme Court quashed the Reserve Bank of India’s ban.
The framework underlines the need for digital assets like cryptocurrencies. It is aimed at persuading Indian authorities to take a more balanced approach towards crypto.
“Now is the time for India policymakers to take the forward-looking approach that many other jurisdictions in Asia, such as Singapore and Japan, have taken. Responsible usage of blockchain technology and digital assets can introduce tremendous potential to the Indian economy,” said Navin Gupta, Managing Director, South Asia & MENA, Ripple.
Ripple’s suggestions come after
a report suggested that the Indian government is considering banning cryptocurrencies again earlier this month. A draft cabinet note was reportedly passed by the Ministry of Finance and shared with other ministries for their consideration.
If the government passes this as law, it would overturn a Supreme Court judgment from March.
“India is currently at the regulatory crossroads — where one path leads to responsible innovation leveraging blockchain technologies with digital assets, and another where players hesitate to adopt game-changing technology,” Gupta added.
What does the Ripple policy paper suggest?
In its policy paper, Ripple has underlined the following points:
- Provide clarity to the legal character of digital assets like cryptocurrency.
- Enable digital asset service providers (like Ripple and others) to trade in the Gujarat International Finance Tec-City (GIFT City) in the short term. This will help in identifying enterprise use-cases of digital assets.
- Remove “cryptocurrency” and “crypto-asset services” from the RBI’s negative list, enabling companies like Ripple and others to test out crypto services in the Indian context.
- Empower the Securities Exchange Board of India (SEBI) to license, regulate and supervise digital asset service providers.
In a nutshell, Ripple wants the Indian authorities to unban crypto and allow the testing of crypto and its use-cases so that it may be rolled out in a phased manner. The crypto firm also advocates regulation by relevant authorities, and seeks to address concerns about the creation of an alternative currency.