India

Indian Parliament Member Helping Crypto Community Influence Regulation

17/09/2019 by Idelto Editor

The Indian crypto community has made progress towards influencing the government’s crypto policies. Some industry leaders have met with an influential lawmaker who has agreed to help bring about positive crypto regulation in the country.

Also read: India’s Popular ‘Who Wants to Be a Millionaire’ Show Gives Crypto a Boost

Parliament Member Agrees to Help

Since the Indian government published the draft bill to ban cryptocurrencies, the crypto community has united to convince lawmakers that the bill is flawed in hope that positive regulation will be introduced instead. This week, the community has made notable progress, as its efforts have caught the attention of an influential member of parliament (MP). Representing the state of Karnataka, Rajeev Chandrasekhar is a member of Rajya Sabha, the upper house of the parliament of India, and the ruling Bharatiya Janata Party (BJP).

Chandrasekhar met with some crypto industry leaders and stakeholders on Monday. Among those he met with was Nischal Shetty, CEO of local crypto exchange Wazirx, who told news.Bitcoin.com:

He’s agreed to help us with the case for blockchain and crypto innovation in India.

“He’s given us some great guidance on how to approach positive regulations,” the CEO recalled, emphasizing that “It’s a good step forward” for the “India Wants Crypto” campaign, which he started 320 days ago. The campaign, which calls for positive crypto regulation in India, is growing in supporters every day. As of Sept. 16, the hashtag “Indiawantscrypto” has been tweeted and retweeted over 56,600 times.

An entrepreneur with experience in technology, finance, and the economy, Chandrasekhar founded BPL Mobile in 1994 and Jupiter Capital in 2005. He was elected to the Rajya Sabha in 2006 to represent Urban Bengaluru, after serving on several committees including the Prime Minister’s Council on Trade and Development. He has also been on various parliamentary committees including defense, finance, telecom, urban development, GST, and real estate. Additionally, he has advocated and intervened on a number of issues including governance, regulatory reforms, policymaking, institution building, freedom of speech, net neutrality, privacy, the protection of children, and national security.

“He understands blockchain and crypto and how they’re innovative technologies,” Shetty remarked. Ecstatic that Chandrasekhar is helping to bring about positive crypto regulation in India, he opined:

Massive win for us. Especially since he’s been a leader for achieving net neutrality in India previously.

As for the next step, “he’ll help us connect with more leaders who can be helpful in this cause. He’s going to help and guide us … We’re going to be setting up some meetings next month with his help,” Shetty shared with news.Bitcoin.com. The MP has previously explained that he has the ability to create documents with the industry’s inputs and have them “presented either in parliament or to the government.”

To effectively convince lawmakers, a survey has been set up by a group of crypto enthusiasts for Indian crypto users to participate. Noting that “some analytical data would help us present better instead of just statistics,” Sathvik Vishwanath, CEO of local crypto exchange Unocoin, asserted that the “Crypto community in India has … another chance to get their voices heard.” Vishwanath also met with Chandrasekhar on Monday.

India Should Not Sit on the Sidelines

During Monday’s meeting, Chandrasekhar also discussed how India should take action to not fall behind other countries. Shetty conveyed the MP’s opinion to news.Bitcoin.com, stating:

When other countries are innovating in this technology, India cannot be sitting on the sidelines.

The Indian government is currently deliberating on the draft bill entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019.” It was submitted by an interministerial committee (IMC) tasked with studying all aspects of cryptocurrencies and providing recommendations. The committee was constituted under the chairmanship of former Secretary of the Department of Economic Affairs Subhash Chandra Garg.

The 108-page IMC report containing the aforementioned draft bill is dated Feb. 28 but was made public on July 22. The Indian government has told the country’s supreme court that this bill may be introduced in the next parliament session.

Countries Studied by Interministerial Committee

Prior to drafting the crypto bill, the IMC studied the regulatory approaches to cryptocurrencies of a number of countries ⁠— Russia, China, Switzerland, Thailand, Japan, the U.S. (New York), and Canada.

Among them, China has taken the toughest stance against cryptocurrencies. While the report states that “Countries like China have completely banned virtual currencies. It does not allow any sort of legal transactions in virtual currencies,” holding crypto is not banned, however. In addition, bitcoin has since been legally recognized by a Chinese court as digital property.

In the U.S., several regulators oversee the crypto industry. While evaluating several proposed rule changes for bitcoin exchange-traded funds (ETFs), the Securities and Exchange Commission has green-lighted some token offerings. The Commodity Futures Trading Commission has allowed several companies to offer bitcoin derivatives. Each regulator has its own guidelines for crypto assets including the Internal Revenue Service and the Financial Crimes Enforcement Network. Some U.S. states also accept cryptocurrency for tax payments.

Another country the IMC studied was Russia, which is slowly progressing towards finalizing its crypto regulation. The government has drafted a few crypto-related bills, incorporating FATF’s recommendations. President Vladimir Putin has repeatedly directed the government to finalize the country’s regulatory framework for crypto assets.

The IMC also studied Switzerland, one of the most crypto-friendly countries, home to cities such as Zug which has attracted many crypto businesses.

Also highlighted in the IMC report is the regulatory approach of Japan, the country at the forefront of crypto regulation, having legalized cryptocurrency as a means of payment back in April 2017. The country’s top financial regulator, the Financial Services Agency (FSA), has approved 20 crypto exchange operators, and over 110 companies have expressed interest in market entry. The agency regularly holds meetings to discuss crypto regulation with industry experts and stakeholders. A new crypto bill has been passed and will go into effect next year. Japan also has a self-regulatory body, which works closely with the FSA.

Another country the IMC looked at which has adopted positive crypto regulation was Thailand. The Thai government started regulating crypto assets in May last year and has legalized four cryptocurrencies to trade against the Thai baht. Since the regulators started licensing crypto service providers earlier this year, five exchanges, three brokers, one dealer, and three ICO portals have been approved.

There are also other crypto-friendly countries the IMC did not examine. For example, catching up to Japan is the Philippines, which also started regulating its crypto industry in 2017. The country’s central bank, Bangko Sentral ng Pilipinas, has registered 13 crypto exchanges so far. The Philippines also has a special economic zone, managed by the Cagayan Economic Zone Authority (CEZA) which has independently licensed 37 offshore crypto exchanges as of June. Portugal is another country that has emerged as the crypto hub due to its attractive tax regimes. Recently, the Dutch central bank announced that it will soon start regulating crypto service providers.

Furthermore, some laws pertaining to cryptocurrency have changed worldwide since the IMC report was compiled. In June, the Financial Action Task Force (FATF) released its new guidance for crypto assets and service providers, and the G20 countries, including India, met and declared their commitments to following the FATF standards on crypto assets.

Despite examining several countries with positive crypto regulations, the IMC still recommended a blanket ban on cryptocurrencies for India. Meanwhile, the country’s supreme court is scheduled to resume hearing the writ petitions against the RBI ban on Sept. 25. The court will hear the case relating to the government’s crypto policies in January next year.

What do you think of the Indian parliament member helping the crypto community? Do you think the community can successfully influence the government’s crypto policies? Let us know in the comments section below.

Images courtesy of Shutterstock.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Indian Parliament Member Helping Crypto Community Influence Regulation appeared first on Bitcoin News.

At Least 19 Central Banks Give Way to Monetary Easing As Economy Slows

15/09/2019 by Idelto Editor

More Than 18 Central Banks Give Way to Monetary Easing As Economy Slows

In a coordinated fashion, more than 18 central banks worldwide have or plan to cut interest rates, sparking a domino effect of monetary easing. It’s been 10 years since the world has seen central planners orchestrate such harmonization in an attempt to save the economy from a deep recession.

Also Read: Money and Democracy: Why You Never Get to Vote on the Most Important Part of Society

A Large Number of Central Banks Slash Interest Rates

Economists have been saying for a while now that the global economy is headed for a severe wakeup call that could be worse than 2008’s financial crisis. The news started heating up at the beginning of 2019 and more than half of U.S. economists from the National Association for Business Economics (NABE) said they believe an economic downturn is coming by 2020. Financial forecasters think in the midst of a macroeconomic storm from elections, trade wars between the U.S. and China, and a no-deal Brexit that it’s only a matter of time. Tumultuous geopolitical events have caused the world’s central banks to awaken from their slumber and start slashing interest rates. As the end of the year draws near, many central banks have started a rate cut frenzy.

Usually, when the economy is consistent and considered ‘strong,’ central banks keep interest rates higher. On the other hand, when the economy doesn’t look so hot, central banks cut rates so smaller financial institutions can borrow at a better rate. The concept is derived from Keynesian economics, the economic theory of total spending in order to stave off inflation. The goal of interest rate cuts is so the smaller hive of banks below the central banks can give the savings from better rates to consumers. However, instead of trickling down to the people, the excesses usually stay with the monopoly. While keeping the hard assets to themselves, the banking cartel also starts to lend at an alarming rate. They don’t care if individuals and organizations don’t pay up and they know they will have to deal with delinquencies and foreclosures. At the end of the day, all those issues just give the bankers another way to pillage hard assets like homes, land, boats, cars, and anything people can’t afford. Unfortunately, this cycle continues every few decades and generations who haven’t even been born yet are left with more debt.

Traditionally when central banks cut rates en masse it is a warning sign that the economy is likely headed for troubling times. In the past, people have always hedged their savings by using safe haven assets like gold to escape the wrath of rapid inflation and fiat currency devaluation. Nowadays, precious metals and cryptocurrencies are both benefiting from the doom and gloom financial forecasts. The following is a look at central banks that are currently planning for monetary easing and stimulus packages or have already approved financial inducement and slashed interest rates.

Japan

The Bank of Japan (BOJ) has an accommodative stance toward monetary easing these days. In July, BOJ Governor Haruhiko Kuroda explained to the press that he was positive about keeping long-term interest rates at 0% and short-term rates to -0.1%. When negative rates were first introduced in Japan in 2016, the move was considered shocking. The following month, after the Federal Reserve cut rates this year, Deputy Governor Masayoshi Amamiya said the BOJ was also fully prepared to offer more easing. One of the central bank’s board members also mentioned that Japan’s banks might start charging fees for savings accounts as well. This September, the BOJ is considering deep negative interest rate cuts to respond to global risks facing the economy.

At Least 19 Central Banks Give Way to Monetary Easing As Economy Slows — BOJ Governor Haruhiko Kuroda.

The U.S.

The Federal Reserve has already cut the U.S. interest rate by a quarter-point in July hoping to spur more lending and spending. When the Federal Open Market Committee and Fed Chair Jerome Powell sliced the rate for the first time since the 2008 financial crisis, the group noted economic “uncertainties” remain. Now reports detail that Fed officials will lower rates by another quarter-point by the end of September. U.S. President Donald Trump has encouraged the Fed to cut rates even lower. “The Federal Reserve should get our interest rates down to zero, or less, and we should then start to refinance our debt,” Trump declared on September 11 on Twitter. “Interest cost could be brought way down, while at the same time substantially lengthening the term — We have the great currency, power, and balance sheet.”

Europe

On Thursday, September 12, the European Central Bank (ECB) approved a new stimulus package and cut interest rates. Just like the BOJ and the Fed, members of the ECB are afraid of “worrisome inflation.” According to the ECB, the deposit rate dropped from -0.4% to -0.5% and this November the bank plans to begin €20 billion a month worth of bond purchases. “The Governing Council expects (bond purchases) to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates,” the ECB said.

China

The economy in China has been floundering according to economists and the country has also been dealing with a trade war with the U.S. China’s People’s Bank of China (PBOC) revealed on September 6 that the bank would cut its reserve requirement ratio by 50 basis points. The PBOC also announced that a few specific banks might be entitled to a ratio reduction of 100 basis points if they qualify. China’s new bank cuts will start on Monday, September 16 and the PBOC claims the cuts will provide roughly 900 billion yuan ($126.35 billion) into the Chinese economy. Like Japan, China has an accommodative stance toward monetary easing and this is the third time this year the PBOC has made changes and the seventh time since the financial crisis in 2008.

South Korea

In a surprise move in mid-July, the Bank of Korea (BOK) announced reducing the country’s benchmark interest rates. The BOK also told the press that economists predicted rapid inflation forecasts and slashed the seven-day repurchase rate from 1.75% to 1.5%. “Economic circumstances have deteriorated since April … With the rate cut, we took into account the effects of Japan’s trade restrictions,” BOK governor Lee Ju-Yeol explained during a press conference. Seoul has had conflicts with Japan and just like China and the U.S., the two countries are locked in a trade row.

Russia

The Bank of Russia has been a friend of monetary easing and rate cuts making its third interest rate reduction on September 6. Bank of Russia Governor Elvira Nabiullina and members of the board told the public that “If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of a further key rate reduction at one of the upcoming board of directors’ meetings.” Russia’s benchmark rate was trimmed down to 7% from 7.25%. Russian forecasters believe the inflation rate of 4% could drop to 3% and the Minister of Economic Affairs Maxim Oreshkin believes the bank should continue easing even further.

India

In August, the Reserve Bank of India (RBI) decreased rates for the fourth time in 2019. The rate cut this summer was the largest since 2010, shaving 35 basis points, and the RBI will now lend to banks at 5.4%. Finance minister Nirmala Sitharaman stood by the rate cut and insisted that a “significant rate cut would do a lot of good for the country.” Members of the RBI and government officials plan to meet this October and the country could see further rate cuts in the near future.

Thailand

Central bankers in Thailand are scared inflation is growing out of control and surprised the world on August 8 by cutting repurchase rates from 1.75% to 1.5%. The Bank of Thailand cited slow economic growth, trade wars, and economic uncertainty. The trade war between the U.S. and China was highlighted during the announcement. According to reports, five panel members voted for the cut and two wanted the interest rates to remain unchanged. Two weeks prior to the quarter-point cut, the seven members of the central bank committee unanimously voted to keep the rates untouched.

10 More Central Banks Participate in Monetary Easing

All of these banks are just the tip of the iceberg when it comes to the large number of other central banks participating in monetary easing. Other financial institutions include central banks from England, Australia, New Zealand, Brazil, Mexico, Hong Kong, Indonesia, South Africa, Turkey, and the Philippines. Despite decades of poor central planning, these financial institutions retain full power over the monetary system. The people have absolutely no say in how the system is adjusted, tightened and eased.

However, as the years pass, more individuals and organizations are growing tired of the banking cartel’s practices. A great number of people have sought alternatives like cryptocurrencies so they can protect their wealth from the financial system that’s clearly rigged. Individuals who are sick of bailing the banks out and paying for their mistakes believe that at some point the scales will tip. It merely takes enough people to opt out of the monopolized monetary system. At the rate at which people are learning about a new wave of monetary innovation, at some point there will be a mass exodus whether banks and governments like it or not.

If you are interested in joining the counter-economy and purchasing digital assets like bitcoin cash, you can check out buy.Bitcoin.com, local.Bitcoin.com, and exchange.Bitcoin.com.

What do you think about the cascade of central banks unveiling rate cuts and monetary easing methods? Do you think the central banks know what they are doing when it comes to monetary policy? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, Pixabay, Kim Hong-Ji, Wiki Commons, Fair Use, and Qilai Shen.

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Indian Lawmaker Raises Hope of Positive Crypto Regulation

12/09/2019 by Idelto Editor

A member of the upper house of the Indian parliament has given the crypto community some advice on what can be done to influence the government’s crypto decisions. He encourages anyone to reach out to him and discuss their concerns, including issues related to the draft bill to ban cryptocurrencies in India. His words and suggestions have given the crypto community hope.

Also read: India’s Popular ‘Who Wants to Be a Millionaire’ Show Gives Crypto a Boost

Rajya Sabha MP Ready to Discuss Crypto

Indian Member of Parliament (MP) Rajeev Chandrasekhar has given the crypto community some advice in Tuesday’s episode of the Blockworks Group’s Untold Stories podcast. He discussed various crypto-related topics, ranging from the Indian government’s policies and the draft bill to ban cryptocurrencies to the banking restrictions by the central bank and the supreme court hearing. The MP is scheduled to meet with some members of the Indian crypto community next week.

Chandrasekhar is a member of Rajya Sabha, the upper house of the parliament of India, and the ruling party, Bharatiya Janata Party (BJP). He represents the state of Karnataka, of which Bengaluru is the capital.

During the podcast, the MP was asked about the report and draft bill to ban cryptocurrencies, submitted by an interministerial committee headed by former Secretary of the Department of Economic Affairs Subhash Chandra Garg. The question came from Nischal Shetty, CEO of local crypto exchange Wazirx, who was a guest on the podcast. He informed the MP that this bill proposes a ban on cryptocurrencies in India without involving or consulting any industry experts. “Can we expect industry participation to make the report more positive, and better for our crypto ecosystem in India?” the CEO asked the MP.

“Those of you, who have a view on crypto and believe that there is sufficient room, in the public policy space, for the policies to evolve and be inclusive of innovation, and at the same time, address the security and other concerns. They should just reach out to me,” Chandrasekhar replied, elaborating:

I have the ability to create, let us say, documents with your inputs, and have that presented either in parliament or to the government.

“So, don’t worry about what goes on in government, and that is one particular point of view,” he remarked. “India is a fairly vibrant democracy in the sense that you can still approach people like me, and evolve an alternate view and have that alternate view be discussed, narrated, and debated within government. I can do that, you know, I’d encourage you to reach out to me.”

First Step to Influencing Government’s Policies

Chandrasekhar further detailed how anyone can get in touch with elected representatives and discuss their concerns, adding that many are already doing so on all kinds of issues. He reiterated that India is a vibrant democracy and there are many MPs like him who would listen. Many of them can be contacted via Twitter or Facebook; some have even posted their mobile numbers online, he said. The MP proceeded to encourage the crypto community to reach out and meet with him to discuss their concerns, declaring:

I actively encourage people to come, sit with me, and believe in my ability to articulate their positions, and their points of view to people in government and their leadership of the government, and hopefully persuade them to do the right thing.

As for the pending crypto case at the country’s supreme court, he admitted that he has not studied the case and has only read about it in media reports. Nonetheless, the MP emphasized: “I’m happy to look at it, I’m happy to even suggest an approach that is workable, if there is any room for that. I am happy to engage. I never say no to having a conversation with anybody on any issues related to technology.”

Sathvik Vishwanath, CEO of local crypto exchange Unocoin, tweeted that he felt “super pumped” after listening to Chandrasekhar. He is scheduled to meet the MP next week. Noting that the lawmaker “acknowledges innovation and can also influence policymaking,” Vishwanath is now convinced:

Banning need not be the destiny of crypto in India.

MP Wants to Help Crypto Community

Shetty is also meeting Chandrasekhar next week to further discuss the issue concerning crypto regulation in India. He has also been running an “India Wants Crypto” social media campaign, calling for positive crypto regulation in the country. The campaign has entered its 315th day.

Besides being an MP, Chandrasekhar is an entrepreneur with experience in technology, finance, entrepreneurship, and the economy. He founded BPL Mobile in 1994 and Jupiter Capital in 2005. The latter is an investment and financial services firm headquartered in Bangalore, with a presence in nine countries. Bangalore, known as a high-tech hub of India, ranked number one in the country for crypto jobs, according to job listing site Indeed.

In 2006, Chandrasekhar was elected to the Rajya Sabha to represent Urban Bengaluru, after serving on several committees including the Prime Minister’s Council on Trade and Development. He has also been on various standing and select committees of parliament including defense, finance, telecom, urban development, GST, and real estate. The MP has advocated and intervened on issues such as governance and regulatory reforms, policymaking, institution building, freedom of speech, net neutrality, privacy, protection of children, national security and the welfare of the armed forces personnel.

Shetty told news.Bitcoin.com Wednesday:

He said he wants to help. And the best thing is that he’s previously helped with net neutrality in India and with making privacy laws better for people. I’m looking forward to the meeting and knowing his background I’m confident he’ll help us.

“He has a tech background and that will help crypto immensely as he understands technology really well,” the Wazirx CEO elaborated. “He has been an entrepreneur who has been instrumental in the telecom revolution of India. It is natural for him to understand cutting edge technologies such as crypto. We’re going to discuss the way forward with him, get his inputs and chart out our next path under his guidance.”

Chandrasekhar Asked RBI to Develop Framework

The Rajya Sabha MP has previously urged the government and the Reserve Bank of India (RBI) to develop a framework to handle new innovations and trends. In December 2016, he wrote a letter to the late Finance Minister Arun Jaitley, detailing some issues he expected to emerge as the government and the RBI moved to increasingly digitize the Indian economy. Particularly, he suggested that the banking and payments ecosystem would need to be transformed.

Citing a surge in domestic bitcoin trade, a “move of black economy to the dark internet,” and how “The surveillance and policing requirements are challenging,” he wrote:

I suspect the government and RBI are ill-equipped currently to deal with this … I am drawing your attention to the need to be ahead of the curve on this rather than behind and so the RBI must develop the capabilities on this urgently.

However, the duo did not create any framework. The RBI and the Ministry of Finance independently dealt with the rising interest in cryptocurrencies by issuing several warnings to the public about the risks associated with them. When interest did not wane, the central bank issued a circular, banning regulated financial institutions from providing services to crypto businesses. The ban went into effect in July last year, and banks subsequently closed the accounts of crypto exchanges, forcing some of them out of business.

Chandrasekhar shared his thoughts on why the RBI decided to issue a banking ban instead of setting up a framework to deal with crypto assets. He asserted that there are two ways of addressing a problem in any governmental system. One is to stay ahead of the curve, which he said is hard for a government to do, while the other is to shut down the threat. While maintaining that he himself does not want “innovation to be trampled by a paranoid approach to regulation,” the MP acknowledged that the RBI has chosen this path.

During last month’s supreme court hearing of the writ petitions against the RBI ban, the court gave the central bank two weeks to answer the representation filed by the Internet and Mobile Association of India (IAMAI) regarding measures crypto exchanges could take. The hearing is scheduled to resume on Sept. 25.

Do you think the Indian crypto community will succeed in convincing the government to introduce positive crypto regulation with the help of MP Chandrasekhar? Let us know in the comments section below.

Images courtesy of Shutterstock, Rajeev Chandrasekhar, and Nischal Shetty.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Indian Lawmaker Raises Hope of Positive Crypto Regulation appeared first on Bitcoin News.

India’s Popular ‘Who Wants to Be a Millionaire’ Show Gives Crypto a Boost

10/09/2019 by Idelto Editor

One of the most popular reality TV shows in India called Kaun Banega Crorepati, based on the show ‘Who Wants to Be a Millionaire,’ has just given crypto a boost. A contestant on the show was asked a question about Facebook’s Libra cryptocurrency, and the show’s host, Amitabh Bachchan, proceeded to explain what cryptocurrencies are to millions of viewers.

Also read: Indian Government’s New Report Views Crypto Positively

Indian Version of ‘Who Wants to Be a Millionaire’

Kaun Banega Crorepati (KBC) is one of the most popular reality TV shows in India. Based on the British program “Who Wants to Be a Millionaire,” the game show began airing in the year 2000 and is now in its 11th season. It is hosted by veteran actor Amitabh Bachchan. During Monday’s episode, he asked a contestant about Facebook’s Libra and then talked briefly about cryptocurrencies in general.

Himanshu Dhuria, a 19-year-old contestant from Uttar Pradesh who is training to be a commercial pilot, was in the hot seat. Among the questions presented to him was “What is Libra, proposed by Facebook?” He had to choose between four options: artificial intelligence camera, instant messenger app, short video platform, and cryptocurrency.

Similar to its Western counterparts, the show allows the use of lifelines to help contestants answer difficult questions, such as asking the audience, removing two of the four choices (50:50), and asking experts. Without using one of his lifelines, Dhuria correctly answered that Libra was a cryptocurrency. Host Bachchan then proceeded to briefly explain what cryptocurrencies are, stating:

Cryptocurrency is a form of digital and global money system — currency. Bitcoin, litecoin, [and] ripple are some existing cryptocurrencies.

The Indian crypto community is overjoyed that millions of KBC viewers have now been exposed to cryptocurrency. Nischal Shetty, CEO of local crypto exchange Wazirx, tweeted after the show that “Millions of Indians now know about crypto thanks to this.”

According to local media, the game show is among the most popular in India. Rediff.com reported earlier this month that the show racked up a viewership of 246 million in 2017, which dropped to 223 million the following year. Data by the Indian Broadcast Audience Research Council (BARC) shows that, in September 2017, KBC was the second most watched show in the country.

Danny Boyle’s 2008 film Slumdog Millionaire was loosely based on this show. It won eight out of the 10 Oscars it was nominated for at the 81st Academy Awards, including Best Picture. Further, the host in the movie, a role portrayed by Anil Kapoor, was based loosely on Bachchan. The actor has since appeared on a celebrity version of KBC. Bachchan himself is also an actor and producer. He gained popularity in the early 1970s and has won numerous awards.

Facebook’s Libra Scrutinized Globally

Facebook unveiled its plans in June for a newly formed subsidiary, Calibra, to provide financial services via the Libra network. “The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology,” the social media giant detailed. “The wallet will be available in Messenger, Whatsapp and as a standalone app — and we expect to launch in 2020.”

Since Facebook’s announcement, many countries have been scrutinizing Libra due to its massive scale which could propel the digital currency into the mainstream, jeopardizing the role of central banks worldwide. Several U.S. lawmakers have voiced their concerns and tried to stop Facebook from continuing its work on the project. The G7 countries have held several discussions on the matter. There have even been reports that some countries are escalating their efforts to launch central bank digital currencies to get ahead of Libra. China, for example, is reportedly close to launching its own digital currency that will resemble Libra.

As for India, former Secretary of the Department of Economic Affairs (DEA) Subhash Chandra Garg said at the time that the “Design of the Facebook currency has not been fully explained.” He elaborated, “But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.” Garg headed an interministerial committee (IMC) tasked with studying all aspects of cryptocurrencies and providing recommendations. The IMC has submitted its report with a draft bill entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” to the Ministry of Finance. The government has told the country’s supreme court that this bill may be introduced in the next parliament session.

Positive News and Supreme Court Hearings

Since the IMC report and draft bill were made public on July 22, the Indian crypto community has been putting a lot of effort into convincing lawmakers how flawed the recommendations are. Instead of banning cryptocurrencies, the community is calling for positive regulation for the Indian crypto industry.

The Indian crypto community’s efforts have gained the support of some major industry groups such as the Internet and Mobile Association of India (IAMAI) and the National Association of Software and Services Companies (Nasscom). Both believe that banning is not the solution. The IAMAI also has a writ petition pending at the supreme court which challenges the banking ban by the Reserve Bank of India (RBI). The central bank issued a circular in April last year, banning banks from providing services to crypto businesses including exchanges. The ban went into effect 90 days later.

Last week, the Steering Committee constituted by the DEA, also under the chairmanship of Garg, submitted its final fintech report to the finance minister. The report put crypto in a positive light. It states that the “Use of digital tokens resolves the issue of multiple currencies, improves liquidity and capital compliance costs, allows for micro-payments and expedites the payment process, which further eliminates liquidity risks.” It further adds that “The mechanisms surrounding cryptocurrencies, particularly the blockchain and initial coin offerings (ICOs), are revolutionizing the global fintech landscape.”

The Indian supreme court is scheduled to resume hearing the case against RBI’s banking ban on Sept. 25. During the latest hearing of this case, the court ordered the central bank to reply to the representation filed by the IAMAI which outlines measures crypto exchanges could implement such as those related to KYC and AML. Meanwhile, the case concerning the country’s crypto policies has been moved to the end of January.

What do you think of this popular Indian TV show mentioning cryptocurrency and Libra? Let us know in the comments section below.

Images courtesy of Shutterstock, Fox Pictures, and Sony TV India.

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Indian Government’s New Report Views Crypto Positively

04/09/2019 by Idelto Editor

A new Indian government report has put cryptocurrency in a positive light, viewing the mechanisms surrounding it, including initial coin offerings, as “revolutionizing the global fintech landscape.” The report also discusses the regulation of coins and tokens.

Also read: Indian Exchanges Innovate as Calls for Positive Crypto Regulation Escalate

Steering Committee’s Report

The Indian Ministry of Finance announced Monday that the Steering Committee on Fintech-Related Issues has submitted its final report to the finance minister. The committee was constituted by the Department of Economic Affairs (DEA) under the chairmanship of Subhash Chandra Garg who was the DEA Secretary at the time. He has since been reassigned to the Power Ministry. The 150-page report includes a section on digital currencies and tokens.

The committee described in its report that the “Use of digital tokens resolves the issue of multiple currencies, improves liquidity and capital compliance costs, allows for micro-payments and expedites the payment process, which further eliminates liquidity risks,” elaborating:

The mechanisms surrounding cryptocurrencies, particularly the blockchain and initial coin offerings (ICOs), are revolutionizing the global fintech landscape.

The report details how ICOs work and emphasizes that token issuance “has emerged as an innovative way of capital raising by fintech businesses,” citing that 790 ICOs had been issued as of Sept. 25, 2018, raising a total of $20 billion. This year, the total amount of funds raised globally in ICOs so far is over $346 million, according to token sale tracking website ICOdata.

The mandate of this committee “was to take stock of developments in the fintech space globally and in India, study the regulatory climate in various geographies, identify application areas and use cases in governance and financial services, [and] suggest institutional regulatory upgrades enabling fintech innovations,” Garg described.

Committee That Drafted Crypto Bill

Another committee under the chairmanship of Garg was the interministerial committee (IMC) tasked with studying all aspects of cryptocurrencies and providing recommendations. Constituted on Nov. 2, 2017, the IMC met three times before submitting its report and draft bill entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” to the finance minister. The report and bill are both dated Feb. 28, but were made public on July 22.

Besides Garg, the IMC report was signed by the secretary of the Ministry of Electronics and Information Technology, the chairman of the Securities and Exchange Board of India, and the deputy governor of the Reserve Bank of India (RBI). All of them are also members of the Steering Committee, along with a number of other government officials, the CEO of the Unique Identification Authority of India, and the CEO of Invest India. In addition, 31 industry participants are listed in the report, including the National Association of Software and Services Companies (Nasscom), the Internet and Mobile Association of India (IAMAI), Paypal, Mastercard, Facebook, and several banks such as RBL Bank, State Bank of India, and Yes Bank.

Since the public release of the IMC report and draft bill, the Indian crypto community has been campaigning to convince the government that the recommendations are flawed. Nasscom and IAMAI have also voiced their concerns regarding the bill to ban cryptocurrencies as they believe that banning is not the solution. IAMAI has also filed a writ petition with the supreme court challenging the banking ban by the RBI.

Regulation of Cryptocurrencies

The Steering Committee report suggests that tokens can be grouped into two categories depending on the objective of their issue. The first category is utility tokens, which “entitle future access to a company’s product or service,” the report reads. This type of token includes digital coupons, such as those a hotel or other service providers would issue.

The second category is security tokens. The report notes that some token issuance has the attribute of a security, referencing the U.S. SEC vs. Howey court case which established the guidelines for determining if an offering constitutes a security. The report briefly explained how the Howey test works, stating that four criteria must be satisfied. Particularly, there must be an investment of money and an expectation of profits. The investment of money must be in a common enterprise and any profit must come from the efforts of a promoter or third party. According to the report:

The regulation of coins or tokens depends on the characteristics and the purpose for which they are being issued.

While the above classification is mentioned in the IMC report, it is not part of the bill which seeks to ban all “private cryptocurrencies,” except state-issued ones. Instead of defining tokens as security or utility, the bill simply defines cryptocurrency as “any information or code or number or token not being part of any official digital currency, generated through cryptographic means or otherwise, providing a digital representation of value which is exchanged with or without consideration, with the promise or representation of having inherent value in any business activity…”

In its report, the IMC acknowledged that it “recognizes that technological innovations, including those underlying virtual currencies /crypto tokens, have the potential to improve the efficiency and inclusiveness of the financial system.” Nonetheless, it still recommends “a law banning the cryptocurrencies in India and criminalizing carrying on of any activities connected with cryptocurrencies in India.”

Last month, the central bank published its final fintech regulatory sandbox framework. Among the types of businesses, projects, and services that may not participate are those involving cryptocurrency; crypto-asset services; trading, investing, and settling in crypto assets; ICOs; and any products or services which have been banned by the government of India. Meanwhile, the Indian supreme court is scheduled to hear the case relating to India’s crypto policies in January next year, after postponing it at the request of the government in July. The government told the supreme court that it may introduce the bill on cryptocurrency in the next parliament session.

What do you think of the Steering Committee’s report? Do you think the Indian government will abolish the bill to ban cryptocurrencies and introduce positive regulation instead? Let us know in the comments section below.

Images courtesy of Shutterstock and the Indian Ministry of Finance.

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