“One would need to read the fine print, especially the definition of virtual digital assets, to understand the exact implications of the announcement. In absence of law regulating trading in crypto and digital assets, this is a step forward by the government of India,” said Rajat Prakash, the managing partner at Athena Legal.
The Joint Committee of Parliament (JCP) in its report on the Personal Data Protection Bill (2019) has sought the establishment of a single regulatory authority to oversee both personal and non-personal data and recommended that the center, in consultation with sectoral regulators, prepare an extensive policy on data localization.
Our Managing Partner, RAJAT PRAKASH explained to The Economic Times that "Considering that the data protection law will be one of the key legislations to drive the economy of the future, the government needs to tread carefully on the issues( such as) regulation of non-personal data under the same legislation." He also added any over-regulation or any actions contrary to global norms could impact the future of the digital economy.
India’s decision to introduce its proposed regulation for the crypto industry next week has led to some fear, uncertainty, and doubt (FUD) in the market. While experts believe that a blanket ban on cryptocurrencies is unlikely, it is not impossible — albeit, not advisable.
Our Managing Partner, RAJAT PRAKASH & Partner Siddharth Mahajan in conversation with Business Insider India told that "Over the years, the user base of Indians holding or trading cryptocurrencies has increased exponentially, hence any blanket ban could lead to increase in the use of the non-legal channels by people to invest in crypto and government losses on a potential revenue".
“A ban is certainly possible, but enforcement of that could prove to be troublesome and difficult to enforce."