As countries around the world find their feet in the cryptocurrency market, governments have jumped on board in attempts to regulate the use of digital assets. Places such as Malta, Gibraltar, and Singapore have taken an open-arms approach to new crypto ventures and companies, coupled with a strict regulatory framework to help prevent fraud.
India and China, however, have opted for a much more cautious approach to cryptocurrencies while embracing blockchain technology. Both governments have said they think cryptocurrencies are too risky to remain unregulated.
Bullish on Blockchain, but Not Crypto
India is currently considering a ban on cryptocurrency offerings to private retail investors, an announcement that comes mere months after the ribbon was cut on India’s first ‘Blockchain District’ in Hyderabad, in the southern Indian state of Telangana. The country hasn’t outright banned crypto but has communicated to banks that they cannot have accounts for digital assets, making their integration into the mainstream financial sector more difficult.
“I think that the current space in India is that the government is very pro-blockchain,” said ex-Morgan Stanley banker turned crypto entrepreneur Prashanth Swaminathan. He added:
“Where I think the country is lacking at this stage is in its understanding of the crypto space.”
Before founding crypto exchange XDAT and becoming an advisor for Indian blockchain company eleven01, Swaminathan worked ten years with Morgan Stanley and even guided financial institutions in the EU through the financial crisis of ’08. He leverages that experience to try and educate companies like eleven01 on the regulatory standards they need to stay abreast of to stay out of trouble.
Swaminthan says he hopes the government reaches a more thorough understanding of crypto “sooner rather than later,