Refer - Livemint
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· Countries are in various stages of banning, un-banning, re-banning and regulating crypto assets.
· In the past seven years, 430 million bank accounts have been created for the under-banked. There are 45,000 chit funds (and many more unregistered ones).
· Software technology parks (STPs) and special economic zones (SEZs) enabled the IT services boom. Creative ‘crypto export zone’ schemes can incubate clusters of excellence and create world-class financial services firms and unicorns.
Concerns about crypto assets
Investor protections:
· Investor protection has been a top priority for Indian regulators. Crypto assets are seen as high-risk, speculative assets.
Sidestepping current regulations:
· Some crypto assets may allow individuals to bypass securities issuance laws. That’s a potential risk to capital markets. That’s a potential risk to macroeconomic stability.
Illicit transfers:
· Anonymous transfers of crypto assets may weaken anti-money laundering laws or combating the financing of terrorism rules. That’s a potential national security issue. Robust know-your-customer (KYC) norms are the solution here.
· In summary, a smart regulatory approach considers both the potential upside and downside. It fosters financial innovation, safeguards investors and unshackles the Indian crypto ecosystem.
Manish 3 years
IAS Parliament 3 years
Stick to the word limit. Reduce the space given to diagrams. Subheadings can be better. Good Attempt. Keep writing.