A Lawyer Says India Should Ease Regulations Concerning FinTech

News / 26.01.2020

Earlier reports highlighted numerous court cases concerning cryptos in India’s Supreme Court. The cases are against the decision of India’s Reserve Bank to prohibit the provision of crypto-related services by banks and financial institutions. Some cryptocurrency contributors have been striving to ensure the introduction of crypto in India.

During the World Economic Forum in Davos, one of the speakers was Prathiba Jain. Jain is the founder and New Delhi Head of Nishith Desai Associates. She spoke about “Anti-Money Laundering and Counter-Terrorist Financing (AMLCTF) System in Modern FinTech Industry.”

As stated in a report, she highlighted the necessity of easing regulations in India’s FinTech sector. However, Jain agreed that regulations are essential to fight money laundering and terrorism in a nation such as India.

She said this was because the parallel cash economy as well as terrorism financing were key problems in growing and developing the economy. Prohibiting them would be counter-productive and allow the development of cryptocurrencies outside India.

While explaining her views on regulations, she said they enable the protection of the rule of law and democracy and are likewise critical to global security. She said prescriptive laws will continue to become outdated as changes happen to the evolving technologies; so the prohibition of technologies such as cryptos will only help develop them outside the country.

Based on her suggestions, there would be improvements with balanced regulations that are based on principle instead of rule.

 

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Debasish Das is from India, an engineering graduate and holds a postgraduate degree in management. He has 10 years of experience in the financial sector, having worked for one of the biggest MNC banking groups in the country. Currently he has business in e-commerce, insurance and consultancy. As an avid blockchain and cryptocurrency enthusiasts he believes in investing in the future of technology, and feels this is going to make the world a single marketplace and also give the power from centralized banks and governments back to people.