From being a favorite of young and mature traders, cryptocurrencies in the past year or two seem to have lost their luster, thanks to various governments’ decisions to impose bans along with the endless numbers of controversies. But with the Financial Stability Board advisory report on the regulation, supervision and oversight of crypto-asset activities and markets, it is believed that one will finally be able to identify problems and challenges related to crypto-asset activities, as well as potential gaps in regulatory, supervisory and oversight approaches. “The recent focus placed by the Financial Stability Board (FSB), an international platform, in G20, 2023, regarding the regulatory framework for crypto assets, may turn into a favorable policy framework to support the growth of this high potential sector,” Dilip Chenoy, Chairman of Bharat Web3 Association, a Web3.0 platform, told FE Blockchain. Chinoy added that the developments may foster an environment for collaboration, ensuring that India remains at the forefront of technology adoption.
The FSB proposes nine high-level recommendations for the regulation, oversight and supervision of crypto-asset activities and markets. These include cross-border collaboration, regulatory authorities, governance, overall oversight, risk management, data management, pre-operational compliance, rights recovery and stability mechanism, recovery and resolution planning. Ultimately, he expects to focus on protecting client assets and managing conflicts of interest. These regulations are made on three principles which include; Same activity, same risks, same regulation, high level flexibility and finally technology neutrality. “The adoption of crypto assets in the past few years has increased beyond the innovator stage in emerging economies like Nigeria where Bitcoin penetration has been phenomenally high. El Salvador is the first country to use Bitcoin as legal tender. Apart from these many small and large countries, it is experimenting with cryptocurrencies for digital goods,” explained Avinash Pulipali, Senior Director, Head of Cryptocurrency Tax Business, Cleartax, the tax filing platform.
Add to that, cryptocurrency platforms have improved tax guidelines, in sync with government guidelines, thus trying to legitimize investing in the currency. Use cases such as CoinDCX, an Indian crypto company, in collaboration with KoinX, a crypto tax platform, will provide an infrastructure enabling users to file their taxes along with access to easy-to-use crypto tax calculation and reporting. “The introduction of tax structures or tax-related subscriptions through crypto platforms is a positive sign for the Indian crypto ecosystem on the whole,” explained Roshan Aslam, co-founder and CEO of GoSats, a web analytics platform.
Currently, the market capitalization of cryptocurrencies is $29,802.94 billion, according to statistics from CoinMarketCap, a market research platform. Looking ahead, the future of crypto assets is expected to hold transformative potential aided by mainstream adoption, scalability improvements, breakthrough innovations, and continuous regulatory developments that do not hinder technological advancement.
Furthermore, the landscape of possibilities for crypto assets is vast and unexplored, with many innovations waiting to emerge. A steady stream of groundbreaking developments can be expected in the future. The potential for growth and advancement is huge, and it’s great to be part of such a dynamic and evolving ecosystem.”
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