In this opportunity, the Ministry of Finance of India announced that the Committee on Economic Affairs related to the Fintech submitted its final report to the ministry, which consists of 150 pages, including a section on digital currencies and tokens. The report reveals that the committee considered that the use of digital tokens resolves the issues of multiple currencies, improving the liquidity costs and ensuring the compliance of capital, while allowing micropayments streamlining the process resulting in a removal of liquidity risks. In this sense, explains that: “The mechanisms that surround the cryptocurrencies, particularly the chain block and the initial offerings of coins (ICO), are revolutionizing the global landscape of the financial technologies”. The issuance of token “has emerged as an innovative way of raising capital by companies fintech” to review the report, basing these claims in the 790 to the ICO that had been issued to the 25th of September 2018, raising a total of US$ 20 billion. So far this year, has been raised to the world level a little more than US$ 346 million, according to ICOdata. The committee’s goal “was to make a balance sheet of the developments in the space fintech on a global level and in India, to study the regulatory climate in various geographies, identify areas of application and use cases in government services and financial, to suggest improvements to regulatory institutional enabling innovations in fintech”, described Subhash Chandra Garg, who was the Secretary of the Department of Economic Affairs of India and has chaired the steering committee. The report also points out that the tokens can be classified of the following way: token utility that will “allow future access to the product or service of the business” in that it will include digital coupons, as that would make a hotel or other suppliers of services. The second classification is directed to the security tokens, making reference to the court case of SEC of USA vs. Howey which established the guidelines for determining whether an offer constitutes a warranty. In the report reference is made to that is the test of Howey, and criteria should exist for an initial offer is a guarantee and not a scam. The controversial aspect of this report lies in the fact that a month ago the Central Bank of India released its final framework regulatory fintech, which expressly prohibits entrepreneurs to participate in business criptograficos in any way, shape or form. Similarly, we introduced a bill which recommends the prohibition of criptoactivos private, recommending the creation of the digital currency of the state monopolizing the market. A curious fact in this whole affair is that the same Garg took the presidency of the inter-ministerial Committee that recommended such a ban through the bill leaked last July. The following two tabs change content below. Advocate, enthusiast of new technologies, believing that Blockchain and Bitcoin will bring development to the mankind.
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