www.financialexpress.com Open in urlscan Pro
23.201.252.28  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Monday, July 31, 2023

 * English English
 * தமிழ் தமிழ்
 * বাংলা বাংলা
 * മലയാളം മലയാളം
 * ગુજરાતી ગુજરાતી
 * हिंदी हिंदी
 * मराठी मराठी
 * Business Business
 * बिज़नेस बिज़नेस
 * Insurance Insurance



The Financial Express

Follow Us
 * Facebook
 * Twitter
 * Linkedin


Sign in
 * Home
 * India News
 * Industry
 * Market
   * Market
   * Indices
   * Nifty 50
   * BSE Sensex
 * Stock Stats
 * Healthcare
 * Money
 * Auto
 * Blockchain
 * SME
 * Brandwagon
 * INVESTING ABROAD
 * Audio


 * Trending
 * Index Performance
 * Market Stats
 * NSE Gainers
 * NSE Losers
 * BSE Gainers
 * BSE Losers
 * Nifty 50
 * Gold Rate

Switch to Hindi Edition

 * Home
 * Karnataka Election 2023
 * Budget 2023
 * Market
   * Stock Stats
   * Top Gainers
   * Top Losers
   * Indices
   * Nifty 50
   * Sensex
   * CaFE Invest
   * Commodities
   * IPO NEWS
   * Investing Abroad
 * IPOs
 * Economy
 * Technology
 * Auto
 * SME
 * Express Mobility
 * Industry
   * Banking & Finance
 * Education
 * Money
   * Insurance
   * Income Tax
   * Mutual Funds
 * BlockChain
 * Infrastructure
   * Railways
   * Aviation
   * Roadways
 * India
 * Defence
 * Lifestyle
   * Travel & Tourism
   * Health
   * Science
 * Healthcare
 * Brand Wagon
 * Entertainment
 * Events
 * Jobs
 * Sports
   * IPL 2023
 * Multimedia
   * Photos
   * Videos
   * Audio
   * Web Stories
   * Auto Web Stories
   * Infographics
 * ePaper
 * Today’s Paper
 * From The Print
   * International
   * Edits & Columns
   * Opinion
   * FE 360
   * Politics
   * Economy
   * Personal Finance Print
   * Front Page
   * FE Insight
   * Fe@Campus
 * archive



NSE Top Losers
AG Universal
₹44.35
-8.45
-16%
DE Nora
₹1787
-305.5
-14.6%
ASL Indus
₹21.8
-2.4
-9.92%
Steel Exchan
₹12.35
-1.35
-9.85%
DynamicCable
₹419.05
-45.1
-9.72%
BSE Top Gainers
Concord Drug
₹35.04
5.84
20%
Bhagya.India
₹67.15
11.19
20%
BasntAgroTec
₹22.8
3.8
20%
Northern Spi
₹318.15
53
19.99%
Remsons Inds
₹345.75
57.6
19.99%
BSE Top Losers
DE Nora
₹1789.65
-301.5
-14.42%
OctawareTech
₹35
-5.18
-12.89%
B Right Real
₹180.35
-24.55
-11.98%
BajajHindstn
₹16.12
-2.08
-11.43%
MRP Agro
₹161.37
-17.93
-10%
Commodities
GOLD
₹6011
0
0%
SILVER
₹764
0
0%
DIESEL
₹94.27
0
0%
PETROL
₹106.31
0
0%
NSE Top Performing Index
Nifty Bank
₹45651.1
183
0.4%
Nifty Auto
₹15708.05
170.15
1.1%
Nifty Midcap 100
₹37721.35
364.2
0.97%
Nifty IT
₹29928.45
438.2
1.49%
Nifty Pharma
₹14992.15
29.6
0.2%
Nifty 50
₹19753.8
107.75
0.55%
BSE Top Performing Index
BSE MidCap
₹30419.75
259.93
0.86%
BSE Sensex
₹66527.67
367.47
0.56%
BSE Bankex
₹51432.39
112.73
0.22%
BSE Information Technology
₹30276.57
383.41
1.28%
BSE Auto
₹36017.44
367.21
1.03%
NSE Top Gainers
Jay Jalaram
₹256.8
42.8
20%
Remsons Inds
₹346.05
57.65
19.99%
Bhagya.India
₹66.7
11.1
19.96%
Lloyds Steel
₹46.05
7.65
19.92%
Wendt India
₹14040.65
2270.75
19.29%
NSE Top Losers
AG Universal
₹44.35
-8.45
-16%
DE Nora
₹1787
-305.5
-14.6%
ASL Indus
₹21.8
-2.4
-9.92%
Steel Exchan
₹12.35
-1.35
-9.85%
DynamicCable
₹419.05
-45.1
-9.72%
BSE Top Gainers
Concord Drug
₹35.04
5.84
20%
Bhagya.India
₹67.15
11.19
20%
BasntAgroTec
₹22.8
3.8
20%
Northern Spi
₹318.15
53
19.99%
Remsons Inds
₹345.75
57.6
19.99%
BSE Top Losers
DE Nora
₹1789.65
-301.5
-14.42%
OctawareTech
₹35
-5.18
-12.89%
B Right Real
₹180.35
-24.55
-11.98%
BajajHindstn
₹16.12
-2.08
-11.43%
MRP Agro
₹161.37
-17.93
-10%
Commodities
GOLD
₹6011
0
0%
SILVER
₹764
0
0%
DIESEL
₹94.27
0
0%
PETROL
₹106.31
0
0%
NSE Top Performing Index
Nifty Bank
₹45651.1
183
0.4%
Nifty Auto
₹15708.05
170.15
1.1%
Nifty Midcap 100
₹37721.35
364.2
0.97%
Nifty IT
₹29928.45
438.2
1.49%
Nifty Pharma
₹14992.15
29.6
0.2%
Nifty 50
₹19753.8
107.75
0.55%
BSE Top Performing Index
BSE MidCap
₹30419.75
259.93
0.86%
BSE Sensex
₹66527.67
367.47
0.56%
BSE Bankex
₹51432.39
112.73
0.22%
BSE Information Technology
₹30276.57
383.41
1.28%
BSE Auto
₹36017.44
367.21
1.03%
NSE Top Gainers
Jay Jalaram
₹256.8
42.8
20%
Remsons Inds
₹346.05
57.65
19.99%
Bhagya.India
₹66.7
11.1
19.96%
Lloyds Steel
₹46.05
7.65
19.92%
Wendt India
₹14040.65
2270.75
19.29%
NSE Top Losers
AG Universal
₹44.35
-8.45
-16%
DE Nora
₹1787
-305.5
-14.6%
ASL Indus
₹21.8
-2.4
-9.92%
Steel Exchan
₹12.35
-1.35
-9.85%
DynamicCable
₹419.05
-45.1
-9.72%

Must Read
SBI raises Rs 10,000 crore via unsecured long-term infra bonds
Bullet Train! Third revolution is in the making, which is the high-speed rail: S
Jaishankar
WhatsApp message claims that government might be reading your texts, PIB
clarifies
Monsoon creates havoc in Uttarakhand; IMD predicts heavy to very heavy rain in
next 4 days – PHOTOS
Pause slide

 1. Business News
 2. business
 3. blockchain
 4. Regulatory oversight required to protect Indian VDA investors amidst shift
    to P2P platforms


REGULATORY OVERSIGHT REQUIRED TO PROTECT INDIAN VDA INVESTORS AMIDST SHIFT TO
P2P PLATFORMS


REPORTEDLY, INDIA IS HOME TO VDA INVESTORS WHO BELIEVE IN THE POTENTIAL OF
BLOCKCHAIN TECHNOLOGY

July 29, 2023 12:45 IST
Follow Us

Experts believe that it's essential to address these regulatory challenges

By Krishna Sarma

The establishment of a comprehensive regulatory framework for VDAs is
imperative. This framework should strike a balance between fostering innovation
and ensuring investor protection. India has the potential to lead the way in the
global Web3 revolution. With a perfect blend of homegrown dynamic startups and
investors who passionately embrace the potential of blockchain technology, India
holds the key to unlocking immense possibilities. However, as with any emerging
industry, it requires support from the government in the form of robust
regulation. 



Denying banking and UPI services to compliant Indian exchanges is not only
unjustified but also counterproductive to the nation’s policy objectives of
protecting Indian VDA users and maintaining oversight in the ecosystem. It is
important to note that most of the Indian exchanges are compliant and employ
robust measures, such as maintaining a KYC database and utilizing software that
ensures secure and transparent trades. As these start-ups are invested in
long-term business engagement, the interests of the investors are central.
Therefore, it is crucial to grant UPI access to VDA exchanges that are
registered in India and comply with Indian laws, such as the Prevention of Money
Laundering Act (PMLA) and the Income Tax Act. This will enable Indian investors
to transact seamlessly, ensure investor protection, and prevent capital outflow
to non-compliant platforms. Unfortunately, VDA Exchanges are currently deprived
of accessing the UPI facility, a right that should rightfully be granted to
them, despite there being no official notification on this disallowance.  

Also Read
BlackRock, Worldcoin, Ripple: Bitcoin bull Mike Novogratz dishes on crypto
The emergence of an AI revolution in the IT industry
US congressional committee passes bipartisan bill to develop a regulatory
framework; crypto players finally see light
Australian banks to discontinue ‘high-risk payments’ to crypto exchanges

The decisions made in the past, such as the denial of UPI services and the
implementation of a 1% TDS in India’s Virtual Digital Assets (VDA) market, may
have faded from public discourse, but their consequences continue to
reverberate. Indian investors, seeking alternatives in the face of these
challenges, have shifted to P2P platforms, unaware of the risks that lie ahead.
While media reports often highlight instances of scams and fraudsters, putting
the entire industry in bad light, it is important to recognize that these issues
arise from investors using P2P and foreign platforms, where the regulatory
safeguards are not as stringent as in compliant Indian exchanges. It is
important to understand the gaps and create a more secure environment for Indian
investors in the VDA and Web3 industry.

India is home to millions of VDA investors who believe in the potential of
blockchain technology. Imagine India ranking among the top five countries in
terms of VDA adoption in 2022, with a staggering transaction volume of $172
billion between July 2021 and June 2022. However, after this impressive success,
a concerning shift in investor behavior has been observed since mid-2022
resulting in a noticeable decline in trading volumes in Indian exchanges.
Surprisingly, this drop does not indicate a waning interest in VDAs among
Indians, but rather suggests a migration towards peer-to-peer (P2P) platforms
and foreign exchanges. A report by ESYA highlights that approximately USD 3,852
million (~INR 32 thousand crores) worth of trade volume shifted from domestic
centralized VDA exchanges to foreign ones during February to October 2022.

What caused this shift in investor behavior? It is pertinent to note  that in
early April 2022, UPI services for crypto exchanges were disabled. UPI has been
a widely adopted payment system in India and has facilitated easy payments and
fund transfers since the pandemic. The denial of UPI services to Indian
exchanges prompted investors to explore other channels, such P2P platforms, to
engage with VDAs. While these channels do not comply with the regulatory
guardrails set for Indian exchanges, they enjoy full access to the Indian
banking system for transactions. The shift towards P2P transactions caused due
to the introduction of a 1% TDS on crypto sales by the Indian government,
driving investors to seek alternatives that may potentially help them avoid
taxation. 

The investors engaged in these P2P exchanges are probably not fully aware of the
risks they are exposed to. P2P trading platforms lack comprehensive regulatory
frameworks, leaving room for exploitation by scammers and fraudsters. While some
of these P2P platforms conduct basic KYC verifications, the overall absence of
stringent oversight poses risks. Disputes and issues that arise during
transactions are challenging to address due to the absence of a regulatory
authority. Scammers exploit the escrow system on P2P exchanges by deceiving
users and circumventing secure transfers, undermining the trust-based nature of
these platforms.

It is essential to address these regulatory challenges. Additionally,
strengthening investor education and awareness about the risks and rewards of
crypto investments is vital. It can foster a responsible and informed investor
community.

Consider the remarkable impact of the IT and ITes sector, as well as the recent
surge in fintech. These industries have played a pivotal role in propelling
India’s economy forward, generating employment opportunities for millions of
Indians. Such achievements were made possible due to the unwavering support
provided by the government. Now, as we stand in the nascent stage of another
groundbreaking chapter, the VDA and Web3 realm beckons us with equal promise and
potential. It is an opportunity to not just revolutionize internet but to
empower individuals, fuel dreams, and transform lives.

The author is founder, Corporate Law Group

Follow us on Twitter, Facebook, LinkedIn

More Stories on
crypto
cryptocurrencies
cryptocurrency

Get live Share Market updates and latest India News and business news on
Financial Express. Download Financial Express App for latest business news.

Follow us on
 * facebook
 * twitter
 * instagram
 * telegram

First published on: 29-07-2023 at 12:45 IST
Next Story
Metaverse: A sustainable solution to reduce greenhouse gas emissions


STOCK MARKET STATS

Market Stats
Top Gainers
Top Losers
Indices Performance
Gold Rate
Silver Rate
Petrol Rate
Diesel Rate



RELATED NEWS

Pune Metro to open two more sections tomorrow, PM to flag off services
Bullet Train! Third revolution is in the making, which is the high-speed rail: S
Jaishankar
How EB-5 program helps Indian IT professionals to bypass H-1B visa system
Top 10 small-cap stocks that jumped 300% to 600% in first half of 2023
TVS, Rapido sign MoU to deepen commercial mobility ecosystem



PHOTO GALLERY

9
Monsoon creates havoc in Uttarakhand; IMD predicts heavy to very heavy rain in
next 4 days – PHOTOS
8
PSLV-C56 Launch: ISRO launches 7 Singapore satellites in a picture-perfect lift
off! See Photos
9
PM Modi attends inauguration ceremony of new ITPO complex ‘Bharat Mandapam’ –
See pictures of enchanting event here



STOCK MARKET





LATEST NEWS

Globalisation’s effects: Growth in a fractured world
Counting tax returns: Efforts to widen the tax base have had sub-optimal results
as income growth is slow
Peerless Group plans Rs 1,000-crore capital expenditure
Cooling to be one of the key agenda in COP28: BEE DG Abhay Bakre
Banks’ non-food credit grows 16% in June: RBI data
Stock Market Stats
 * Market Stats
 * NSE Top Gainers
 * NSE Top Losers
 * BSE Top Gainers
 * BSE Top Losers
 * Indices Performance
 * Nifty 50 Performance
 * BSE Sensex Performance

Top NSE/BSE Companies Share Price
 * TOP NSE/BSE COMPANIES SHARE PRICE
 * RELIANCE SHARE PRICE
 * SBI SHARE PRICE
 * TATA MOTORS SHARE PRICE
 * HDFC SHARE PRICE
 * INFOSYS SHARE PRICE
 * ICICI SHARE PRICE
 * TCS SHARE PRICE
 * ITC SHARE PRICE
 * BAJAJ FINANCE SHARE PRICE
 * MARUTI SHARE PRICE
 * TATA STEEL SHARE PRICE
 * BAJAJ FINSERV SHARE PRICE
 * L&T SHARE PRICE
 * INDUSIND BANK SHARE PRICE
 * SUN PHARMA SHARE PRICE
 * BPCL SHARE PRICE
 * TITAN SHARE PRICE
 * INDIAN OIL CORPORATION SHARE PRICE
 * AXIS BANK SHARE PRICE
 * HOUSING DEVELOPMENT FINANCE CORP SHARE PRICE
 * KOTAK MAHINDRA BANK SHARE PRICE
 * HINDUSTAN UNILEVER SHARE PRICE
 * BHARTI AIRTEL SHARE PRICE
 * M&M SHARE PRICE
 * ASIAN PAINTS SHARE PRICE
 * HCL SHARE PRICE
 * NTPC SHARE PRICE
 * ULTRATECH SHARE PRICE
 * ADANI ENTERPRISES SHARE PRICE
 * PGCIL SHARE PRICE
 * HINDALCO SHARE PRICE
 * JSW STEEL PRICE
 * NESTLE SHARE PRICE
 * TECH MAHINDRA SHARE PRICE
 * GRASIM SHARE PRICE
 * WIPRO SHARE PRICE
 * HDFC LIFE SHARE PRICE
 * ONGC SHARE PRICE
 * CIPLA SHARE PRICE
 * SBI LIFE SHARE PRICE
 * DR REDDYS LABS SHARE PRICE
 * BRITANNIA SHARE PRICE
 * COAL INDIA SHARE PRICE
 * ADANI PORTS SHARE PRICE
 * EICHER MOTORS SHARE PRICE
 * APOLLO HOSPITALS SHARE PRICE
 * TATA CONS. PROD SHARE PRICE
 * BAJAJ AUTO SHARE PRICE
 * DIVIS LABS SHARE PRICE
 * UPL SHARE PRICE
 * HERO MOTOCORP SHARE PRICE

Popular Banks IFSC Code
 * Popular Banks IFSC Code
 * SBI Bank
 * HDFC Bank
 * ICICI Bank
 * Axis Bank
 * Canara Bank
 * Bank of Baroda
 * Indian Bank
 * PNB Bank
 * Bank of India
 * Kotak Mahindra Bank
 * Union Bank of India
 * Central Bank of India
 * IDBI Bank
 * Indian Overseas Bank
 * Yes Bank

State Elections
 * Karnataka Election 2023
 * Tripura Election 2023
 * Nagaland Election 2023
 * Meghalaya Election 2023

Trending Topics
 * Share Market LIVE
 * ITR Filing 2023 Live
 * Breaking News Live
 * Petrol and Diesel Rate
 * Share Market outlook
 * Stocks To Watch

Trending Stories
 * Piramal Enterprises shares tank 8% as profit falls, co announces Rs 1750 cr
   stock buyback; should you buy, sell or hold?
 * Nifty to gain on global cues or give up 19600? See GIFT Nifty, FII data, F&O
   ban, crude before market opens
 * Asia shares up as China extends rally; Japanese yields a risk
 * Crude oil price on track for biggest monthly gains in over a year
 * ISRO is on a roll! Ready to witness the thrill of these upcoming ‘exciting
   missions’?
 * Walmart buys out $1.4 billion Tiger Global stake in India’s Flipkart: Report
 * RPF jawan shoots dead 4, including ASI, on board Jaipur-Mumbai train,
   arrested
 * Income Tax Return Due Date AY 2023-24 News Live: Last Date Extension Denied,
   Over 6.5 Crore ITRs Filed

More From Business
 * Bullet Train! Third revolution is in the making, which is the high-speed
   rail: S Jaishankar
 * ETS launches TOEFL Go App to support test takers for shorter TOEFL iBT
   preparation
 * Binance secures new Dubai-based licence to provide crypto broker-based
   facilities 
 * Sociowash crafts campaign ‘If cars could dream’ for Hero Lectro
 * ISRO undertakes a commercial launch for Singapore
 * Luxury Ride onboards Himanshu Arya as co-founder and CEO
 * IRB Infra posts Q1FY24 PAT of Rs 134 crore and consolidated income of Rs
   1,745 crore
 * Maruti Suzuki’s Q1 FY24 profit jumps 145% on better realisation, highest ever
   quarterly net sales
 * Lexus launches ‘Lexus Meraki on Wheels’
 * US automakers unite to fight Tesla with new EV charging network

Follow Us
 * Facebook
 * Twitter
 * Linkedin

Download Apps
 * Play_stor
 * Apple_stor

Express Group
 * INDIAN EXPRESS GROUP
 * The Indian Express
 * Loksatta
 * Jansatta
 * Inuth
 * Ramnath Goenka Awards
 * MyInsuranceClub
 * IE Tamil
 * IE Malayalam
 * IE Bangla
 * IE Gujarati
 * This website follows the DNPA’s code of conduct
 * Compare Term Insurance

Quick Links
 * T&C
 * Privacy Policy
 * Hindi
 * Pan Card
 * Aadhaar Card
 * Insurance
 * World News
 * Entertainment
 * Airlines/Aviation
 * CONTACT US

Copyright © 2023 The Indian Express [P] Ltd. All Rights Reserved




×
No communication from RBI on CEO succession, says Kotak Bank
Rating: Buy | SBI Cards sustains solid business performance
Lok Sabha passes Cinematagraph (Amendment) Bill, 2023
Marico Rating: Add | Margin outlook positive
Bajaj Finance deposits cross Rs 50,000 crore
‘Retail deposits have grown, interest margin to be stable from now’
Today’s Most Popular Stories ×

WEB STORIESNIFTY 50STOCK MARKET STATS