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Legal experts split over crypto regulation
January 31, 2022
Legal experts are divided over regulating crypto assets. While one section is advising the government not to take a hasty decision without understanding the use cases, the other is against continuing the status quo despite the difficulty in defining crypto.
ICICI Bank’s Group general counsel Pramod Rao has said, “The government’s pause on crypto bill is a good thing for us to wait and watch, and decide whether we need a separate regulator, which can transcend into all use cases”.
However, Cyril Amarchand Mangaldas partner Anu Tiwari said that it will take a few years for a new regulator to attain maturity which is too long a time for crypto. According to Tiwari, SEBI is the practical option for regulating crpyto despite challenges like identifying issuers of tokens.
The legal experts were speaking in a webinar organized by Vidhi Centre for Legal Policy last week.
According to Rao, regulation is aimed at having transparent rules that are commonly applied. One cannot expect regulation to be a safety net for investment. Rao said it is incumbent on the domestic crypto industry to keep enhancing the level of disclosures.
Rao also said that in the case of regulation, the application of numerous existing laws will have to be considered.
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