Indian cryptocurrency and NFT companies have welcomed the new executive order by US President Joe Biden to study cryptocurrencies as an asset class and weigh their pros and cons.
Companies such as CoinSwitch, Jupiter Meta, Vauld and Defy believe the order provides a supportive stance to users and the crypto industry as a whole while keeping in mind security of the asset class as a top priority.
“While India has rightly taken note of the consumer and investor interest in the crypto industry and continues to calibrate its regulatory approach, the US approach is an opportunity to also consider the positive influence crypto can have on the competitiveness of a country in the global financial systems,” said Ashish Singhal, Founder and CEO, CoinSwitch Kuber, a cryptocurrency exchange platform.
Singhal added that CoinSwitch would like to see cryptocurrencies at par with other asset classes, to create a level playing field.
Darshan Bathija, CEO and Co-Founder of crypto platform Vauld, believes that executive order provides clarity to digital asset customers and companies. “Indian companies and customers could also benefit from more precise domestic regulations,” he added.
“The regulatory needs for both countries are vastly different. We believe the Indian regulators will pay attention to foreign regulations and implement policies to safeguard Indian crypto users and companies,” said Bathija.
Biden, on Wednesday, issued an executive order where he instructed federal agencies to explore possible uses, risks and regulations for cryptocurrencies, as well as R&D into US-based central bank digital currency (CBDC).
However, Kashyp Kompella, AI and blockchain analyst, believes that the need of the hour is an integrated and nuanced approach to how crypto can impact different parts of India’s current financial architecture.
“There is a lot of hype and misinformation and a lack of data on cryptocurrencies. There are also extreme positions ranging from government officials who want crypto to be dealt with a heavy hand to crypto businesses who want a complete free-for-all. Neither view is pragmatic,” points out Kompella, who runs RPA2AI, a market research firm.
Bhagaban Behera, CEO and Co-Founder of Defy, a social cryptocurrency exchange, also echoes the view that the move would set precedence for other governments to move towards creating regulatory frameworks.
However, other crypto-related companies such as NFT marketplace Jupiter Meta, feel it is too early to speculate on which direction the industry is heading towards.
“The US has only gone to the drawing board to assess and form a policy around cryptos in the real economy. We will have to wait for the outcome before jumping to conclusions,” said Sathyan Rajan, Founder & Director at Jupiter Meta.
“The Indian government has already made the announcement some time ago, about such an evaluation process, though not through an executive order,” added Rajan.