The Lok Sabha is set to discuss the country’s cryptocurrency regulation in the week beginning November 29. The lack of change in how the item was listed on the agenda led to some panic selling. This will be the second time this year that the government has listed the crypto bill as an agenda item.
Siddharth Mahajan, Partner at Athena Legal explained to Business Insider India that A"s with any new industry, innovation occurs before the regulation can catch up. This was true for industrialization, the digital age, and now web3. The only difference is that when it comes to the world of blockchain, developments are occurring faster than ever before — a growing pain for regulators, stakeholders, and investors alike. “A ban is certainly possible but enforcement of that could prove to be troublesome. It will give rise to a lot of illegal activity over the dark web etc. Hence, it will be prudent for the government to regulate it rather than completely ban it."
The Indian government has listed its new crypto bill on the agenda of the upcoming Winter Session of Parliament, which starts on November 29. The description calls to “prohibit all private cryptocurrencies,” but has not defined what it means by ‘private’.
According to RAJAT PRAKASH, Managing Partner at Athena Legal told Business Insider India that “An inference can be drawn that generally anything not owned by the government is considered private. Also, it could mean that cryptocurrencies that are on private blockchain hence making them untraceable could be private cryptocurrencies.” It could also mean that non-government coins, which include everything from Bitcoin to Tether to Shiba Inu, won’t be legal tender and could be classified as an asset.
“The regulatory vacuum governing cryptocurrencies and other blockchain driven assets is the biggest risk for NFTs. Another point of concern is whether the creator owns the copyright in the digital art sold as NFT or the person who purchased the said NFT. In various jurisdictions around the world, the general consensus is that the creator retains the exclusive copyright over the work and the NFT is simply a license granted to the purchaser, however, due to lack of specific law or any well-known judicial precedent, it still remains to be tested," said Rajat Prakash, managing partner at legal firm Athena Legal.