Questions regarding the legality of cryptocurrencies in India continue to plague any debate surrounding it. The 2018 RBI circular directing regulated entities not to deal in cryptocurrencies were challenged in a week-long hearing recently.
With the 2020 Budget to be presented in parliament, stakeholders in the cryptocurrency world remain anxious. Sumit Gupta, Co-founder, and CEO of the trading platform CoinDCX, wrote an open letter to the Finance Minister Nirmala Sitharaman, today.
In the letter shared with AMBCrypto, Gupta highlighted the precarious position occupied by cryptocurrency in the country and potential benefits it can offer if regulators are more open to innovations in the financial sector.
He went on to add that the aim of cryptocurrency in India was to create a “new dynamic in which the crypto economy and the traditional economy can function in parallel.”
Citing one of the greatest features of cryptocurrency, Gupta highlighted how it can make financial services more inclusive by onboarding the country’s unbanked demographic towards financial services.
He stated “The cryptocurrency sector has the potential to give rise to countless new entrepreneurs, new start-ups, new businesses, new innovations, new products and services, new consumers, and altogether new markets—by investing in the industry, the nation of India stands to benefit both socially and economically.”
The letter also highlighted how by demonizing cryptocurrency, the country stands to lose out in comparison to other countries like China and the US. “While venture capital firms have invested upwards of ₹400 billion INR in blockchain startups globally, India has received less than 0.2% of these investments.” These numbers according to him continue to represent a missed opportunity for the country.
In a statement to AMBCrypto, Gupta reiterated the rationale behind writing to the Finance Minister, he highlighted that “having an open crypto regulation is of prime importance to the continued growth of India’s emerging crypto sector.”
