The paper proposes how India’s policymakers can utilize the opportunity afforded by the recent Supreme Court verdict in the “Internet And Mobile Association of India (IAMAI) versus Reserve Bank of India (RBI)” to follow the lead of other markets and enact a transparent, principles-based and proportionate regulatory framework for the digital asset ecosystem in India
Ripple, the enterprise blockchain solution for global payments, announced the launch of a policy paper titled “The Path Forward for Digital Assets Adoption in India”. The paper proposes how India’s policymakers can utilize the opportunity afforded by the recent Supreme Court verdict in the “Internet And Mobile Association of India (IAMAI) versus Reserve Bank of India (RBI)” to follow the lead of other markets and enact a transparent, principles-based and proportionate regulatory framework for the digital asset ecosystem in India.
Sagar Sarbhai, Head of Regulatory Relations, APAC & Middle East, Ripple said, “India is currently presented with an opportunity to develop a regulatory framework for a native digital assets ecosystem. We are optimistic that after careful deliberation and consultation with industry participants, Indian policymakers will implement a regulatory framework that is technology-agnostic, principles-based, and risk-adjusted, in order to provide clear regulatory guidance that can manage and mitigate any associated risks.”
Ripple referenced a series of global case studies in its policy paper, and proposed measures policymakers may implement over the short and medium term to enact a comprehensive digital asset policy in India. This includes:
- Adopt a digital asset taxonomy consistent with global practice – providing clarity to the legal character of digital assets
- Enact a facilitative legal framework for digital asset service providers at the Gujarat International Finance Tec-City (GIFT) in the short term – to attract mature global participants to GIFT for developing enterprise use-cases of digital assets;
- Modify RBI’s Regulatory Sandbox Framework to remove “cryptocurrency” and “crypto asset services” from the negative list – thereby offering service providers an opportunity to test the value proposition of this new technology in the Indian context;
- Implement a conducive regulatory framework for digital assets by amending specific financial sector laws — for example, empower the Securities & Exchange Board of India (SEBI) to license, regulate, and supervise digital asset service providers.
Navin Gupta, Managing Director, South Asia & MENA, Ripple, added “Now is the time for India policymakers to take the forward-looking approach that many other jurisdictions in Asia, such as Singapore and Japan, have taken. Responsible usage of blockchain technology and digital assets can introduce tremendous potential to the Indian economy. Under a clear regulatory framework, individuals and businesses can confidently take full advantage of and operate within a safe environment that encourages the use of innovative technology.”
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