New Delhi : The Cryptocurrency and Regulation of Official Digital Currency Bill 2021, recently proposed by the Central Government, would be a great step to regularize operations of cryptocurrencies in India, Mr Sanjay Aggarwal, PHDCCI President, has opined.
The introduction of a set of guidelines for advertising about crypto exchanges is an encouraging step as this is expected to increase the awareness about consumer protection and the volatile nature of crypto class, said Aggarwal.
Cryptocurrencies need proper and comprehensive regulations and monitoring by a robust institution, he said.
“This is expected to increase the awareness about consumer protection and the volatile nature of crypto class. Application of advertising guidelines to all member cryptocurrencies platforms would ensure a two-way transparency, for the platforms as well as consumer protection”, the PHDCCI President disclosed.
Mr Aggarwal of the opinion that Advertising guidelines for crypto exchange regulators and maintaining governance standards will increase consumer protection and awareness, thereby instilling a positive sentiment around investing and mitigating the risk in the volatile asset market of cryptocurrencies.
Over the years, cryptocurrencies have attracted investors from across the globe. However, cryptocurrencies are one of the most volatile assets in the global markets, and highly speculative in nature. There are certain risks involved in this asset class, including regulatory, scalability, and risk of hacking. It is, therefore, an imperative on the part of investors to comprehend the financial, legal, customer protection and security-related risks associated with cryptocurrencies before investing, Mr Aggarwal cautioned.
The Union Ministry of Corporate Affairs has made it mandatory for companies to disclose crypto trading/investments undertaken during the financial year. “We, at PHDCCI, appreciate that the Government is taking encouraging steps towards regulating digital currencies in India,” Mr Aggarwal added.
