In a major statement made in favour of crypto market, India’s Chief Economic Advisor V. Anantha Nageswaran said that regulators must not block innovation in crypto and Bitcoin. Nageswaran was speaking at the Global Economic Policy Forum 2024 on Wednesday where he urged Indian regulators to balance boosting innovation with corresponding social costs and benefits.
Nageswaran noted that regulation is necessary but it should not stifle innovation, especially in areas of high potential, like Bitcoin and cryptocurrency.
Nageswaran stated, “Regulators must not stand in the way of so called innovations in crypto and bitcoin. We are a low-income country and we have an extensive amount of financial illiteracy, which is of course true in developed countries as well so in that situation, how do we distinguish between not standing in the way of Moonshots?”
Nageswaran’s statement comes in the wake of a delayed crypto policy discussion paper by the Indian government. India doesn’t recognize cryptocurrencies and has one of the highest tax slabs on any capital gains on crypto.
Speaking at the forum, Nageswaran emphasized regulatory transparency, particularly across fast-changing areas such as cryptocurrency, online gaming, and emerging technologies. He underscored the importance of defining clear criteria for regulators to avoid stifling innovation while ensuring that economic activities align with societal goals.
Nageswaran highlighted that regulators should adhere to the same principles of transparency and accountability expected from the entities they oversee.
“The same principle of transparency and social cost benefits that we want to apply to regulated entities and some of their financial innovations should also apply to the regulators themselves,” he said, stressing about the need for regulators to share information actively and evaluate their actions.
He further noted that there are some problems with unelected regulatory bodies, which may not possess the same accountability as elected individuals.
“Unelected powers are not held as accountable as elected powers,” said Nageswaran. “Regulators must hold themselves to high standards and impose checks on their own actions.”
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