CRYPTOCURRENCIES news

Ripple outlines four crucial steps to push cryptocurrencies in India

The Indian cryptocurrency market is teeming with entrepreneurs, funds, and tech know-how to create a vibrant crypto-ecosystem. Yet, it faces a crisis buoyed by slow-moving policies, wayward regulations, and difficult-to-please lawmakers.

This week, Ripple tweeted about its policy framework for pushing digital assets in India, a paper initially published in June that outlined four major steps that the local government could refer to while making frameworks for the market.

Four points outlined

The policy paper offers a global overview of the steps taken by governments elsewhere, such as the U.S., the U.K, and Singapore, and recommends both short- and long-term actions for the Indian government.

First is adopting a “digital asset taxonomy consistent with global practice.” This step involves providing clarity to the legal character of digital assets. India has struggled with this point historically; “banning” and unbanning cryptocurrencies several times while the country’s top regulators — the Reserve Bank of India (RBI) and the Supreme Court — differ on the legality of digital assets.

Next is to enact a facilitative legal framework for digital asset service providers at the Gujarat International Finance Tec-City (GIFT). GIFT is India’s first “operational smart city” combining technology with administrative functions that positions itself as a global business district.

Ripple earmarks the “GIFT” city in India as one the government must allow crypto-development in. (Source: Rediff)

Giving blockchain- and crypto-entrepreneurs a legal springboard could be helpful. “This can attract mature global participants to GIFT for developing enterprise use-cases of digital assets,” said Ripple.

The third is to modify the RBI’s Regulatory Sandbox Framework to remove “cryptocurrency” and “crypto-asset services” from the negative list. Doing so would ensure existing and p