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Need For Global Coordination in Preparing A Regulation For Blockchain Technology

As cryptocurrency grew popular in the market, blockchain technology gained recognition. Cryptocurrency is the most popular blockchain application that people recognize. However, the decentralized nature of the technology has made experts realize the true potential of the technology in various industries. Like every new technology, blockchain too requires a regulatory framework that industries follow. 

“A Global Collaboration to Term The Blockchain Regulations,” Says RBI Governor

While many industries and global businesses have already adopted blockchain technology, India prepares to do the same after carving a blockchain regulation. Last Friday, Shaktikanta Das, the governor of the Reserve Bank of India accentuated a global synchronization to modulate technology-based performance like blockchain platforms and decentralized finance. 

The governor of the Reserve Bank of India, Shaktikanta das in the last week FE Modern BFSI 2022, stated that the blockchain regulation requires the collaboration of other regulators outside the country and other jurisdictions. When it comes to technology, it automatically involves the entire World in preparing regulations. 

One such technology that can revolutionize the future is blockchain technology. A particular nation cannot decide the regulations of the technology as it will be working on several platforms. Another such platform is the Defi or Decentralized Finance, where the financial application works on decentralized blockchain technology with the minimum association of third parties. 

RBI governor Mr. Das also stated that it is difficult to form a regulatory framework for a decentralized technology as the lack of a centralized body and anonymity makes it a platform where conventional regulations fail to work. Therefore, setting up a regulatory framework for such a widespread technology requires collaboration and coordination to prepare a congregated framework.

Also Read: Blockchain Shootout: Unlearn These 5 Common Myths on Blockchain Technology

Will India Introduce Crypto Laws?

According to a renowned newspaper, India will form regulations on cryptocurrency after the emergence of global consensus. The sources informed that the government is yet to focus on tightening the crypto provision or introduce laws related to it. 

The uncertainties about cryptocurrency in India were removed after the government finance minister, Nirmala Sitharaman confirmed the legal status of crypto, introducing a 30% tax on the transfer of digital assets in her budget plan for 2022.

In January 2022, Mr. Narendra Modi, President of India stated that a global approach is required to regulate crypto. In March 2020, the Indian government laid off bans on cryptocurrencies encouraging enthusiasts and traders across the nation.

According to a global crypto research firm, India has grown by 641% from July 2020 to mid of 2021. FM Sitharaman also suggested that levying taxes on digital asset exchange does not confirm legalizing cryptocurrencies. She further revealed that the government is not planning to take any steps regarding crypto legislation in India. 

Also Read: Impact of Blockchain Technology on Corporate Treasuries

In Conclusion

Blockchain technology is globally recognized today. With the rising possibility of blockchain technology becoming the future, many countries are planning to adopt the technology. Since the decentralized platform is huge and used in several industries, global collaboration is important to prepare a regulatory framework.

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