There is a serious flaw in the common assumption that cryptocurrencies have nothing to do with institutions and regulations. Like any other business sector, the cryptocurrency space is still in need of scope definitions and practical definitions. In India, cryptocurrency exchanges not only see this as necessary to protect customers’ rights in addition to the compliance already provided, but also see it as a way to integrate into India’s movement to pioneer digital technology, especially as a leader of the G20 .
The population of a digital India
With the push towards a ‘Digital India’ and the introduction of Central Bank Digital Currencies (CBDCs), there has been a recognition of the importance of digital currencies in the development of global digital payment systems and India’s acquisition of virtual digital assets such as cryptocurrency. According to the 2022 report of the UNCTAD, India has made a remarkable mark in the field of digital currencies, ranking 7th globally in cryptocurrency ownership with 7.3% of the population involved in investments in digital assets. The populace demonstrates a dynamic understanding of nuances in the digital asset industry with a special set of skills that enable them to more creatively explore the space for investment and growth.
Indian cryptocurrency exchanges have always recognized this interest and created new opportunities through stable and secure means for their users to tap into its potential. These newer capabilities include offering different product offerings, helping with ease of trading, margin trading, and processing transactions faster. Major crypto solutions like BNS also provide API services for the smooth running of other service providers to enable efficient trading solutions. This allows other cryptocurrencies to be hosted on compliant authentication-based platforms, creating a stable and secure cryptocurrency space in India.
These offerings are provided to users with the assurance that they comply with broader financial and economic policies, such as the Intergovernmental Financial Action Task Force (FATF) Guidelines for Virtual Asset Service Providers (VASPs).
Compliance and Trust: The Double C’s of Crypto Evolution
According to a joint report by the Boston Consulting Group and Budget & Foresight Ventures, cryptocurrencies are predicted to reach 1 billion users by 2030. Several global centers are becoming crypto hubs, with a marked expansion in countries like Dubai and Singapore opening up markets and boosting investment. This is done by establishing strong regulators and licensing cryptocurrency exchanges based on their compliance measures to encourage a stronger and less volatile industry for huge investments in their economies.
Numerous cryptocurrency exchanges have also started expanding their global operations extensively with institutional backing, and Indian exchanges like BNS are no different. Given the demand for crypto investments and their spillover effects on economic growth in Turkey, BNS has expanded its activities abroad and plans to expand its activities in the Middle East, Southeast Asia and LATAM regions in the coming months to meet the meet growing demand. .
G20: India’s chance to profit
India’s prominent position in the G20 indicates India’s central role in the global economy – with one of the largest markets, a highly skilled workforce and unparalleled growth potential. Moreover, as the second largest digital user across all sectors, India offers a huge growth prospect estimated to reach $150 billion (McKinsey Digital India Report 2019). As a leading global economy, India has the ability to guide discussions on critical topics such as regulation of crypto assets. While consumer protection remains paramount, the potential growth offered by these digital assets, which are inherently traceable, transparent and immutable, should not be overlooked.
Digital assets, thanks to blockchain technology, offer a unique advantage of transparency to regulators while ensuring privacy for consumers. It’s this delicate balance that powers today’s data-driven world and tips the scales favorably between transparency and privacy.
Participation in digital asset conversations is crucial for India and its crypto exchanges as they have the potential to transform and broaden the horizons of our financial systems with greater efficiency, transparency and strict consumer protections. This presents a golden opportunity for India to set global benchmarks for secure cryptocurrency regulatory frameworks. Let’s see India emerge again as a vaccine supplier, this time for building compliance immunity to business morality in the crypto and Web3 ecosystems.
The opinions expressed above are those of the author himself.
END OF ARTICLE