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Ripple proposes India legal framework to regulate XRP, Bitcoin and cryptocurrencies

  • Ripple published a legal and regulatory framework for XRP, Bitcoin and other cryptocurrencies for the Government of India.
  • Ripple’s proposed framework is designed to support innovation and enable India to harness the potential of blockchain technology.

Ripple has noted the positive shift by the Indian government towards Bitcoin and cryptocurrencies. A decision by the Supreme Court lifted the ban on cryptocurrencies in March 2020. Thus, almost a billion people were legally authorized to enter the crypto market.

In that sense, wrote the Head of Government and Regulatory Affairs for Ripple, Sagar Sarbhai, India is at a turning point in terms of the potential for innovation. Therefore, Ripple has decided to publish a legal and regulatory framework that can be used by the Indian government to implement policies that will enable the country to benefit from cryptocurrencies and blockchain technology.

What are the policies that Ripple offers?

The document called “The Path Forward for Digital Assets Adoption in India” contains an overview of the digital asset landscape. In this way, Ripple is able to offer the Indian government, especially its legislators, a comprehensive policy and measures that can be implemented in the short and medium term. The policies proposed by Ripple are the following:

Adopt a digital asset taxonomy consistent with global practice—providing clarity to the legal character of digital assets.

Enact a facilitative legal framework for digital asset service providers at the Gujarat International Finance Tec-City (GIFT) in the short term (…)

Modify RBI’s Regulatory Sandbox Framework to remove “cryptocurrency” and “crypto asset services” from the negative list (…)

Implement a conducive regulatory framework for digital assets by amending specific financial sector laws—for example, empower the Securities and Exchange Board of India (SEBI) to license, regulate and supervise digital asset service providers.

Ripple strongly emphasizes the importance of legislators in implementing proposed policies. They claim that now is the time for them to take the forward-looking approach. In this way, India will be able to introduce responsible use of cryptocurrencies and blockchain technology. In addition, Ripple adds that users and businesses will be able to operate in an ecosystem that encourages the innovative use of these technologies. Ripple outlines:

We urge Indian policymakers to implement a regulatory framework that is technology-agnostic, principles-based and risk-adjusted. (…) you have the world’s attention. Let’s come together and seize the moment.

About Author

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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