From being a favorite among young and old traders, cryptocurrencies in the last year or two seem to have lost their luster, thanks to decisions by various governments to impose a ban along with a host of controversies. But with the Financial Stability Board's advisory report Regulation, Supervision and Supervision of Crypto-asset Activities and Markets, it is believed that issues and challenges related to crypto-asset activities, as well as potential gaps in regulatory, supervisory and supervisory approaches, may finally be identified. โThe recent emphasis placed by the Financial Stability Board (FSB), an international platform, at the G20, 2023, regarding the regulatory framework for crypto assets could become an enabling policy framework to support the growth of this high-potential sector,โ Dilip Chenoy, president of the Bharat Web3 Association, a Web3.0 platform, told FE Blockchain. Chenoy added that the developments could foster a collaborative environment, ensuring that India remains at the forefront of technology adoptions.
The FSB proposes nine high-level recommendations to regulate, supervise and monitor crypto-asset markets and activities. These include cross-border cooperation, regulatory powers, governance, comprehensive supervision, risk management, data management, pre-deal compliance, rights rescue and stabilization mechanism, recovery and resolution planning. Eventually, he hopes to focus on safeguarding client assets and managing conflicts of interest. These regulations have been created on three principles which include; same activity, same risk, same regulation, high-level flexibility and, finally, technological neutrality. โCrypto asset adoption in recent years has increased well beyond the innovator stage in emerging economies like Nigeria, where Bitcoin penetration has been phenomenally high. El Salvador is the first country to implement Bitcoin as legal tender. Apart from these, many small and large countries are testing CBDCs,โ explained Avinash Polepally, Senior Director, Head of Crypto Tax Business, Cleartax, a tax filing platform.
On top of that, cryptocurrency platforms have improved crypto-tax guidelines, in tune with government guidelines, thus trying to legitimize currency investment. Use cases such as CoinDCX, an Indian crypto company, in collaboration with KoinX, a crypto tax platform, will provide an infrastructure that will allow users to file their taxes along with access to KoinX's easy-to-use crypto tax calculation and reporting. โThe introduction of tax structures or tax-related subscriptions by crypto platforms is a positive sign for the broader Indian crypto ecosystem,โ explained Roshan Aslam, co-founder and CEO of GoSats, a web analytics platform.
Currently, the cryptocurrency market capital stands at 29,802.940 million dollars, according to information from CoinMarketCap, a market research platform. Looking ahead, the future of crypto assets is expected to have transformative potential with the help of widespread adoption, scalability improvements, breakthrough innovations, and continued regulatory developments that do not impede technological progress.
Furthermore, โThe landscape of possibilities for crypto assets is vast and unexplored, with a multitude of innovations waiting to emerge. It can be anticipated that a continuous stream of innovative developments could take place in the future. The potential for growth and progress is immense, and it is great to be a part of this dynamic and evolving ecosystem,โ concluded Mridul Gupta, COO of CoinDCX, a cryptocurrency exchange.
