Ripple ‘s new white paper offers a crypto-regulatory frameworks to the Indian legislature in response to the Supreme Court’s decision on cryptocurrencies. The Indian crypto sector is currently clouded with precariousness; despite the country ‘s apex court’s reversal of the previous Indian Reserve Bank ban.
The Supreme Court’s lifting of the ban on banking services did not provide a legal policy for legitimizing the country’s digital currencies. Nevertheless, the cross-border settlement network, Ripple, has published a white paper summarizing the recommended legal structure for cryptocurrencies in the country.
Ripple’s crypto regulatory recommendations to India
According to regulatory head for Ripple in Asia, Sagar Sarbhai noted that:
“India is currently presented with an opportunity to develop a regulatory framework for a native digital assets ecosystem. We are optimistic about that after a careful deliberation and consultation with industry participants.”
According to him, the new Indian digital asset legal policy should be technologically cynical, principle-based, and risk-adjusted to provide clarity on the legal structure that can guide, maintain, and mitigate any related risks.
The Crypto Regulatory Recommendations provided by Ripple would sort out the cloud of uncertainty surrounding the Indian cryptocurrency industry. Although the Supreme Court lifted India’s RBI crypto ban on legal grounds that the administration could not suppress commodities that individuals choose to hold, it did not provide a clear legal guideline for digital currencies.
India Awaiting Legal Clarity
To fulfill the legal desires, Ripple’s crypto regulatory recommendations propose a digital asset taxonomy in line with international guidelines, and an adjustment on the central bank’s Regulatory Sandbox Framework to exclude “cryptocurrency” and “cryptoasset services” from the negative records.
Indian lawmakers will head back to parliament in July, with cryptocurrency legal concerns in mind. Despite the uncertainty, Ripple is still optimistic that India will reap the economic benefits of shrewd regulation and create a structure that encourages development and growth.