Cryptos, the experts believe, require regulation and restricted trading. A couple of years back, the ministry of finance was keen to promote and regulate blockchain, but there is no progress in this direction. Should we have a progressive approach to cryptos and blockchain?

Blockchain technology is a unique combination of computer code and human involvement. Since computers are not all that flawless, the solutions built on blockchain and the persons involved must be accountable. It is not possible to control blockchain, but the applications must conform to security and privacy protocols.

There could be a beginning by ensuring that servers of cryptos are located in India. Besides, blockchain must be used for legitimate activities. The provisions of taxations would in fact driveaway trading from India.

A progressive regulatory approach seems to be reasonable. There could be a regulator for India’s crypto industry. The government expects coordinated global effort for the cryptos. The RBI recommends banning cryptos. Global consensus and outright ban are the two extremes. In the mean time, a regulator could be considered to take care of the interests of all stakeholders.

Exchanges could be allowed to buy and sell cryptos and get proceeds, but should be prevented to take the delivery. It will prevent dabba trading — informal and unofficial trades. A custodian can audit crypto trade of exchanges.

Though China has banned crypto trading, it allows P2P trading. There is P2P trading on Indian exchanges but volumes are not much.