BT exclusivity: the interests of crypto investors must be protected; not ban the solution: Amitabh Kant

With cryptocurrency legislation in the works, NITI Aayog CEO Amitabh Kant said investor interests must be protected given that 1.8% of India’s population was already invested in virtual currency until in 2021.

The government is expected to take the full cryptocurrency bill for Cabinet approval to table it in the winter session of parliament, starting November 29. The bill should describe the classification of cryptocurrencies, their regulation and the intention to tax income from them. The implementation of the provisions will probably be included in the 2022-23 finance bill.

In an exclusive interview with Business today, Kant said banning cryptocurrencies was not the answer and that there was a need to consider “soft-touch, innovation-driven regulation” in the emerging industry.

“There is a massive adoption of cryptocurrencies or crypto assets as a store of value. From the perspective of retail and institutional investors, around 1.8% of the Indian population invested in crypto through 2021. This is more than 2.2x growth from the previous year. And, therefore, what becomes evident is that crypto, both from a tech and investor perspective, is growing rapidly in India, ”Kant said. “What we need to ensure is that the interests of investors are protected and that concerns about the misuse of technology are fully taken into account,” he added.

The 1980 Batch IAS agent pointed out that according to the NASSCOM crypto-tech industry report, over 230 startups in the cryptocurrency space are multiplying in India with nearly 270 million dollars invested in Indian blockchain and crypto start-ups.

Kant said the government should encourage India’s budding and mature tech talent pool to participate in the innovation cycle offered by crypto in the new decentralized Web 3.0 ecosystem. “So banning it is not the solution for innovation, but a risk-mitigated legal framework is the solution,” Kant added.

In early March 2020, the Supreme Court overturned the RBI circular banning cryptocurrencies.

“I think there is a need for pro-innovation soft touch regulation in this emerging industry. We should learn from best practices around the world and we should learn from global regulatory models,” Kant said.

He added that regulating the crypto space is important to ensure that those who have already invested are not fooled by crypto exchanges.

“The regulation has to be put in place by the government, which will be a gradual regulation. It would be a regulation favorable to innovation,” Kant said.

According to knowledgeable officials, the legislation on cryptocurrencies will put in place the tax structure of these currencies where capital gains will apply in the event of income from them and the GST as levied on others. services.

The government is seeking to classify crypto as an asset class, as required by crypto exchanges, rather than as a currency.

Last week, the Standing Committee on Finance, chaired by former Minister of State for Finance Jayant Sinha, met with representatives of crypto exchanges, the new crypto industry body Blockchain and Crypto Assets Council ( BACC), CII and Assocham, among others. While committee members raised concerns and the need for regulation, the currency ban was not discussed.

Prime Minister Narendra Modi said last week that all democratic nations must work together to ensure that cryptocurrency “does not end up in the wrong hands which can spoil our youth.”

Also read: “I Didn’t Invest A Single Rupee In Cryptos”: Anand Mahindra on “Lack of Wealth” Report

Also Read: Mumbai Crypto King Provided Bitcoins To Buy Drugs, Government Asks Crypto Exchange To Throw It Up