India to regulate crypto on use cases
India is reportedly working on a cryptocurrency regulation that will be based on use cases of each crypto
It is being learnt that the Indian government will categorize crypto projects on the basis of the technology they use or they can be defined on their end-use.
However, the government has made it clear that it will not allow payments and settlements through virtual currencies/cryptocurrencies.
A CEO of India based crypto exchange has said that this step is very positive for the crypto industry. This will bring more clarity for the entire industry and push more entrepreneurs into this sector. It will reduce the fear of VC investors wanting to invest in the crypto industry in India.
Another crypto exchange CEO said that just like the internet, cryptocurrencies have a multitude of use cases and hence a nuanced approach is best rather than a one-size-fits-all policy.
Crypto experts believe that the idea of categorizing crypto on their use cases would be a significant boost to the newly recognized asset class. It also acknowledges that cryptocurrencies are much more than speculative instruments and do have actual use cases.
Even though India’s advance on crypto regulation sometimes faces ups and downs, the country is looking for a solution to implement crypto policies that fit with its terms and laws. It is notorious that the discussion is leading to a closer path to cryptocurrencies system adoption, which is another big step for crypto’s global acceptance.