India’s chief economic adviser wants regulators to foster innovation in the cryptocurrency sector while ensuring transparency and accountability.
Speaking at the Global Economic Policy Forum 2024, V. Anantha Nageswaran, chief economic advisor at the Ministry of Finance, said regulators “should not stand in the way of so-called innovations in crypto and Bitcoin” .
He stressed the need to balance innovation with societal needs, highlighting that financial illiteracy is a major challenge in India and even in developed countries.
“We need to ensure that the criteria set for regulators do not stand in the way of innovation,” he added.
Furthermore, Nageswaran highlighted the importance of transparency, emphasizing that regulators should actively share information and ensure their actions align with societal goals. According to him, “the same principles of transparency and social cost-benefit” that apply to financial innovations must also apply to regulators themselves.
By adhering to these standards and recognizing the limits of their unelected powers, he argued, regulators can support progress in rapidly evolving sectors like cryptocurrency while protecting public interests.
Nageswaran’s comments come amid calls for regulatory clarity in the country. Indian regulators have been relatively quiet about their stance on cryptocurrencies, leaving the sector grappling with policy uncertainty.
A policy document meant to clarify crypto’s position has been repeatedly delayed as the country diverted resources to developing and testing its central bank digital currency, the digital rupee.
The Reserve Bank of India, which has historically opposed cryptocurrencies, has maintained a cautious stance, with some reports claiming the regulator favors banning private cryptocurrencies due to concerns over financial stability and risks for investors.
Despite the tough conditions, where investors also face a 30% tax on crypto gains, the most populous country has seen a surge in crypto adoption. It ranks first in Chainalysis’ latest Global Cryptocurrency Adoption Index.
Recently, Jetking Infotrain, a leading IT training company in the country, made history after becoming the first publicly traded company in India to add Bitcoin to its corporate treasury.
