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Lifting Crypto ban will boost startup innovation and financial inclusion

Lifting of ban on cryptocurrency trading by SC opens a plethora of opportunities for Indian start-ups and corporates to build innovative solutions using crypto.

March 05, 2020 / 07:28 PM IST

Usha Prasad

With the Supreme Court lifting RBI ban on cryptocurrency trade in India, players in the Indian crypto ecosystem are looking forward to the regulation of cryptocurrency and have expressed support for the same. The current move is expected to provide great impetus to the startup ecosystem and will lead to increased adoption of the blockchain technology.

Sharing their opinion, various firms in the industry however unanimously stressed upon the need for drafting crypto regulations to prevent misuse.

Some prominent voices from the industry:

Raghu Mohan, CEO and Co-Founder of IBC Media, a blockchain innovation management company working with multiple blockchain accelerators in India

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“This curb on the crypto ban is a progressive step towards strengthening innovation and development in India. This will be a step forward to empower entrepreneurs who build innovative business models to solve multiple grassroots problems in India using crypto. It emboldens them to revive their contribution to wealth creation for the country. We are currently speaking to 13 of them as a part of the ongoing Aeternity Starfleet India program and multiple others that we are working on. Crypto needs to be regulated in India, and we are all for it. Tax it and bring in KYC and AML measures to avoid any misuse if need be. In fact, regulating crypto is far easier than regulating physical cash. However, an outright ban sends India back to the Stone Age. Cryptocurrency is set to disrupt businesses across sectors and if regulated well and used for good, it will be instrumental in empowering entrepreneurs and thereby aid in wealth creation for the country.”

Prashanth Swaminathan - Founder & CEO at Tandem, a P2P bitcoin trading platform

The huge opportunity that cryptocurrency offers in terms of investments and financial inclusiveness to the unbanked in the world cannot be ignored. In June 2019, I had made a mention as to how the impact of the banking ban had been strangulating Indian cryptopreneurs and was setting India back by an entire decade. I am glad that better sense has prevailed, and we now have a forward-thinking stance on this. We hope positive regulations come into play soon, allowing adoption on a larger scale.

Nikola Stojanow, CEO of AE Ventures, that has been running blockchain accelerator programs across the globe

“This ruling is significant for the Indian crypto market, especially in the start-up ecosystem. It instils a sense of confidence about the Indian market among foreign investors like AE Ventures and others and opens up a plethora of opportunities for Indian start-ups and corporates to build innovative solutions using crypto. Crypto is set to disrupt the current ecosystem and India has the potential to be a proponent of this wave. We have been following the progress in this ruling actively, since the judgment in April 2018. We cannot be happier that the resolution came in during the Starfleet India’s Genesis Week.”

Kartik Mandaville, CEO of Springworks, HR tech start-up powered by Blockchain and AI

"This is a historic decision by the Supreme Court. The RBI Circular meant that even though there was no ban on Crypto, developers and start-ups were indirectly disincentivised to work on Crypto projects because of the banking ban. With today's decision from the SC, developers can now work on blockchain projects around the world and participate in the upside. They can earn native crypto tokens and then cash out to INR.

"India has only seen maybe 0.1% of all global Blockchain investment. This should get a stimulus after today's decision. Blockchain-tech-backed decentralised apps (known as dapps) now will have greater adoption from enterprises and consumers with the reversal of the ban from banking sector. The tokens can be used as a rewards mechanism in blockchain apps."
Moneycontrol News
first published: Mar 5, 2020 07:28 pm

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