February 17, 2022
By Anjali Kochhar
India’s lack of regularity clarity can be an obstacle for foreign institutional investors wanting to invest in the cryptocurrency sector, according to Jay Hao, chief executive officer of global crypto exchange OKX.
His comments came after Reserve Bank of India Deputy Governer T Rabi Shankar compared cryptos to Ponzi schemes and suggested banning them.
“Usually, the lack of clarity on regulations also discourages FIIs (foreign institutional investors) from investing in that sector. We feel there’s a need for clear guidelines from the regulators to ensure the continued growth of the crypto ecosystem in India,” Hao told Blockchain Asset Review.
He further noted that regulators of a country must be on the same page when it comes to forming the crypto policy framework.
This, he said, as ministers in the country are coming up with different opinions on cryptos since Finance Minister Nirmala Sitharaman announced taxing cryptos in the country.
In a blow to crypto companies in India, Union minister Bhagwat Karad stated that cryptocurrencies are not legal in the country.
In fact, FM Sitharaman herself had earlier hinted that even after taxing cryptos, she might ban them later.
On this, Hao said, “I think it’s important for the regulators of a particular country to be on the same page when it comes to forming the crypto policy framework. Multiple statements from officials may create confusion in the minds of investors which could be harmful for the users.”
“The crypto companies may also hold back on their expansion plans just because there are no clear instructions from the government,” he added.
Raj Kapoor, founder of India Blockchain Alliance and Chief Growth Officer at Chainsense, told Blockchain Asset Review, that backtracking is never a good policy. “I feel the Finance Minister’s statement should be viewed as a statement where we have taken a baby step forward but the steps and strides seem miles away,” he said
Kapoor believes that the announcements made in the federal budget about cryptos have a lot of grey areas that need to be addressed.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
