One of the most important pieces of crypto legislation has been tabled in the Lok Sabha this week – because of the Nirav Modi scandal! To protect the public, the Unregulated Deposit Schemes Bill makes deposits in industries that do not have specific regulations illegal.
While it was designed to protect from any future Nirav Modi copycats, it obviously has unintended costs for ICOs. As Arko Ganguli, co-founder of CoinShala, explains to TheBigScope, this move all but kills the concept of ICOs since India lacks strong laws to deal with cryptocurrencies.
Ganguli continues to say that by creating such legal uncertainty, the Indian government is driving future ICOs to other more regulated economies such as Singapore and Switzerland. The irony in this? India is probably going to end up copying the legal infrastructure of one of those countries when it finally writes crypto-laws!
Catch all this and more on the current regulations in the virtual currency ecosystem, on the latest episode of The Crypto Show with CoinShala’s Arko Ganguli. If you prefer, you can also listen to this video in podcast format here.