Cryptocurrency

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FIG Paper (No. 43 – VDA Series 5) India’s Stablecoin Industry – Reacting to Global Regulations & Market Trends

Stablecoins, which are virtual digital assets (“VDA”) typically pegged to stable assets like fiat currencies, are being recognised as the cornerstone of digital finance revolution, delivering a blend of traditional currency stability and decentralised innovation. As their global adoption accelerates — from everyday retail transactions/ cross-border remittances to institutional treasury operations — governments worldwide are realising that clear, forward-thinking regulation can foster innovation and help their economies stay ahead of the pack.Continue Reading FIG Paper (No. 43 – VDA Series 5) India’s Stablecoin Industry – Reacting to Global Regulations & Market Trends

Cryptocurrency in India

On March 4, 2020, the Supreme Court of India (“Court”) in Internet and Mobile Association of India v. Reserve Bank of India[1] (“Judgement”) set aside the circular issued by the Reserve Bank of India (“RBI”) on April 6, 2018 (“Circular”)[2]. This Judgment marks the second occasion, in recent times, when the Supreme Court has reversed a policy decision of the RBI [3]. The Circular had restricted all entities regulated by the RBI, including nationalised banks, scheduled commercial banks, NBFCs, cooperative banks, payment system operators and other intermediaries (“Regulated Entities”) from dealing in or providing services for facilitating ‘any person or entity dealing with, or settling’ virtual currencies.

Thus, while the Circular did not expressly proscribe peer-to-peer trading in virtual currencies, it severely restricted the conversion of virtual currency into fiat currencies and impaired the ability of businesses which dealt with virtual currencies to access financial services in India.
Continue Reading Virtual Currencies in India: A New Dawn