India’s finance minister said the new regulation will protect investors from crypto asset volatility. According to experts, the government may propose an emergency stop mechanism for trading.
Anurag Thakur said in an interview with Times Now that the government intends to protect investors from cryptocurrency market volatility. However, how the legislators plan to do this, the Indian finance minister did not specify.
“The price volatility of cryptocurrencies is so high – unlike fiat currencies – and this has an impact on investors. Therefore, we must remember to protect investors when drafting the law, ”said Thakur.
The Indian cryptocurrency regulation bill was slated to be submitted on April 8, the last day of the Indian parliamentary session. However, parliament closed on March 25 due to elections in five states. Probably, the bill will be submitted to parliament during the summer session.
As the government continues to hint at the content of the law, members of the Indian cryptocurrency industry are scrutinizing every statement. Experts suggest that the government may offer an option for an emergency stop of cryptocurrency trading.
Such a mechanism will limit the number of transactions on cryptocurrency exchanges under certain conditions. But, most importantly, it is an even more compelling sign that the regulatory framework is in the process of formation and does not imply a complete ban on cryptocurrencies, as previously assumed.
The minister’s words did not come as a surprise to many in the industry as the Indian government has long been considering ways to protect cryptocurrency investors. Sumit Gupta, CEO and co-founder of cryptocurrency exchange CoinDCX, said:
“In our past conversations with lawmakers, one of the main concerns they highlighted was the protection of cryptocurrency investors.”
He said there are only 14 carefully selected crypto assets on CoinDCX’s listing to allay those concerns. In addition, the site has improved its anti-fraud technology.
However, the founder of the SuperStox cryptocurrency trading app, Zakhil Suresh, noted that the minister was talking about protecting investors from cryptocurrency volatility.
“This is different from protecting cryptocurrency investors. What if this “protection” is really about preventing people from investing in crypto assets at all? ”He noted.
