A sudden and complete ban on crypto trading unlikely: Experts

[ad_1]

Read More/Less


In a possible relief to investors, a sudden and complete ban by the government on cryptocurrencies is unlikely according to experts who point out that a brief transition phase would be needed.

“Disposing off cryptocurrency assets is not so easy. I don’t think it is practically possible to ban or dispose of existing cryptocurrency. A ban may have been possible a few years ago when things were getting started. In today’s situation, there would have to be regulations,” said Ajeet Khurana, Founder, Genezis Network.

Difficult to monitor

Further, the nature of cryptocurrency is such that it would be impossible to monitor if the ban is in place and there could continue to be peer-to-peer transactions.

Also see: Crypto should be allowed only as an asset: IAMAI

“A complete and sudden ban on cryptocurrency may not be possible because of the complex nature of crypto assets. The only way the government can monitor crypto-asset movement is through prevalent platforms. Once there is a ban, there will not be a system to monitor such transactions,” said Rashmi Deshpande, Partner, Khaitan & Co.

10 crore investors

The government expected to table The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the Winter Session of Parliament The bill is expected to call for a complete ban on crypto trading and investments and so, there has been a lot of panic selling by investors.

India holds over ₹6 lakh crore in crypto assets. The country is also home to about 15 home-grown cryptocurrency exchange platforms consisting of more than 10 crore investors, according to a note by Motilal Oswal.

Breathing room

While the huge amount of funds invested in crypto at present is not a defence, people would need some breathing room to offload it, Deshpande said, adding that many companies and countries do accept cryptos and a complete ban would impact the competitiveness of Indian business globally.

Also see: Crypto prices stable in India as investors await details of new Bill

Experts point out that even previous versions of the cryptocurrency bill floated by the government had given a 90-day transition period for cryptocurrency holders.

Large ecosystem

According to Mikkel Morch, Executive Director and Risk Management at ARK36 (a crypto and digital assets hedge fund), an outright ban on such investments might be difficult to implement.

“The digital asset ecosystem in India extends far beyond cryptocurrencies and includes other investable assets such as NFTs which are becoming increasingly popular in India,” Morch said.

Regulation required

However, experts agree that some amount of regulation is required.

Also see: Scammers stole “millions” in cryptocurrency in last month: Report

“It is also necessary to bring about regulations for platforms and for investor protection,” Deshpande said, adding that we must wait for the proposed Bill to be tabled before jumping to any conclusions.

[ad_2]

CLICK HERE TO APPLY

Crypto investing: Beware of traps laid by cybercriminals, warn experts

[ad_1]

Read More/Less


“I am excited reading news about cryptocurrencies. I would like to invest there in a small way. Advise me how to go about it,” a senior corporate executive posted on his LinkedIn wall, triggering a volley of suggestions from his followers.

With cryptos gaining currency, there has been a huge interest among a section of the middleclass that is frantically searching Google or checking with the IT crowds to understand this new investment tool to make a small investment to test the waters.

Cybercriminals are quick enough to cash in on the frenzy. In Hyderabad, a corporate executive was duped into opening a crypto account in a fake crypto firm. By showing an inflated increase in his investments, they went on to lure him to invest over ₹60 lakh. By the time he found that he was duped, it was too late. He ended up filing a case with the police.

Fake advertisements

Cyber security experts have cautioned the public not to fall prey to such fake invitations or fall for a plethora of advertisements, including some with fake endorsements by celebrities.

Oded Vanunu, Head of Products Vulnerability Research, Check Point Software Technologies, asked the prospective investors to be cautious and to double-check the URLs before clicking on them. “You should never give your pass-phrase to others,” he said.

“You should skip the ads. If you are looking for wallets or crypto trading and swapping platforms in the crypto space, always look at the first website in your search and not in the ad, as these may mislead you ,” he said.

Check Point Research has warned that scammers are using Google Ads to steal crypto wallets. Scammers are placing ads at the top of Google Search that imitate popular wallet brands, such as Phantom and MetaMask, to trick users into giving up their wallet passphrase and private key.

It estimated that over $500,000 worth of crypto was stolen in a matter of days recently.

Sanjay Katkar, Joint Managing Director and Chief Technology Officer of Quick Heal Technologies, said that the bull run on cryptocurrency and the windfall gains to those who had invested early in cryptocurrencies have attracted the interest of many.

“Taking advantage of this situation, scamsters are targeting new victims by coming out with attractive fake offers on social media,” he said.

The fraudsters are using photos and videos of celebrities to make the prospective users believe that the celebrities are endorsing the scheme.

“There had also been incidents where social medial handles of some celebrities got hijacked and using them to promote fake cryptocurrency schemes,” he said. One needs to be very careful while clicking on social media advertisements. “Look closely at the name of the website, or YouTube channel or Twitter account. The fake accounts will have small differences as a mis-spelling or use of fonts that make the fake account look a genuine one,” he said.

[ad_2]

CLICK HERE TO APPLY

Monetary Policy Committee seen keeping rates unchanged with ‘accommodative stance’

[ad_1]

Read More/Less


Amidst softening retail inflation, the Monetary Policy Committee is expected to keep key rates unchanged and maintain its accommodative stance to help sustain the growth momentum. Some experts believe that there could be steps announced to calibrate excess liquidity.

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, said: “Acuité believes, in line with market expectations, that Reserve Bank of India will continue with its accommodative monetary policy in October although it is likely that it may take some further steps to recalibrate the excess liquidity in the monetary system over the next one to two quarters.”

Economy bouncing back

While the high-frequency indicators for August and September reveal that economic activity is reaching its pre-pandemic levels and the risks of another wave of the Covid are gradually on a decline, the recovery momentum is still uneven, he said.

Retail inflation, as measured by the Consumer Price Index, eased to a four-month low of 5.3 per cent in August with moderation in food prices.

“We expect headline inflation for September to come in at a five-month low of 4.35 per cent,” said a Treasury Research report by HDFC Bank.

“…the RBI is likely to keep its stance accommodative and maintain surplus liquidity in the system. The RBI is likely to wait for growth impulses to get stronger and once domestic and global risks abate (third wave, global supply chain disruptions, Fed taper) before rolling back monetary accommodation,” it said, adding the RBI is likely to continue to manage the yield curve (through GSAP sterilised or Operation Twist).

The MPC, chaired by RBI Governor Shaktikanta Das, is set to meet between October 6 and 8 for the next bi-monthly review. The Reserve Bank had last cut the repo rate by 40 basis points in May 2020 but has since then maintained status quo on rates.

Upside risks to inflation

Economists at Standard Chartered Bank too said they expect the MPC to keep both reverse repo and repo rates unchanged at the October meeting and said it is likely to marginally trim its 2021-22 CPI forecast from 5.7 per cent towards 5.5-5.6 per cent, though upside risks to inflation have increased.

The Standard Chartered Bank report said it expects the MPC to signal reverse repo rate normalisation from December at the October meeting “…in the absence of growth shocks.” It expects the MPC to hike the reverse repo rate by 40 bps (to 3.75 per cent) at the December and February policy meetings.

“The trajectory of inflation is shifting down more favourably than anticipated. As pandemic scars heal and supply conditions are restored with productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary policy,” the RBI Bulletin of September had noted.

At the August policy meeting, MPC member JR Varma was the sole dissenter. While he agreed with the other five members on keeping the policy repo rate unchanged at 4 per cent, he disagreed on continuing with the accommodative stance. He had noted that the possibility that Covid-19 will haunt us (though with lower mortality) for three -five years can no longer be ruled out.

[ad_2]

CLICK HERE TO APPLY

Paytm launches ‘Wealth Community’ for young investors

[ad_1]

Read More/Less


Home-grown digital financial services platform Paytm has launched a new video-based wealth community called the Paytm Wealth Community.

Paytm Wealth Community is an investing community based on video, and “will enable users to attend live sessions conducted by subject matter experts across an array of wealth topics like Stocks, F&O, IPO, ETFs, Mutual Funds, Gold, Fixed Income, and Personal Finance,” the company said in an official release.

“Users will be able to learn from experts, interact with them to clarify doubts, and also chat with other users on the platform to discuss various wealth-related topics,” it said.

The community is meant to tap young users and has been designed for the needs of the “new Indian investor.”

Artificial Intelligence: Financial services industry behind the curve in meeting customer expectations

In beta mode first

“The next 100mn capital market investors in India are expected to originate from social groups and investment communities. Paytm Wealth Community intends to be the leader in helping users save, invest & trade better,” the company said.

The “intuitive” platform will offer live video content on an interactive chat platform. Creators can conduct 30 to 60-minute sessions in multiple languages like Hindi, English, Gujarati and others.

The Paytm Wealth community is owned and operated by OCL Ltd (Paytm) and is initially being offered in beta mode on the Paytm Money platform. It will be offered in beta for select users for the next two months, followed by open access for all.

A limited set of creators have been onboarded by Paytm in beta. In a bid to ensure the safety of retail investors, all creators go through a comprehensive KYC onboarding and all content is recorded/checked, the company said. Over time, users will be able to create custom discussion rooms, set up their creator accounts and chat.

Paytm Money opens new Technology Development Centre in Pune

Community calendar

Varun Sridhar, CEO of Paytm Money, said, “Paytm Money was a natural choice for the Beta launch of Paytm Wealth Community, given our direct access to the broad investment community and reach across India. The Paytm team has implemented cutting edge video & community technology ensuring the platform is seamless, and the user communication is safe and secure. We are very excited by the potential positive impact it will have on how users engage, learn and invest.”

Users who have received access to the Paytm Wealth Community can explore the community calendar, which lists out all upcoming sessions and their details on the Paytm Money app. They can also share sessions on various social media platforms. Other interested users can download or update their Paytm Money app to the latest version and follow Paytm Money on social media platforms to get access to the live session links.

[ad_2]

CLICK HERE TO APPLY

An informal economy is a biggest challenge for lockdown in India, say Experts, BFSI News, ET BFSI

[ad_1]

Read More/Less


As many states in India seem to be heading for a total lockdown, the World Bank chief economist Carmen Reinhart has opined that less extreme forms of lockdown can work in a country like India, sparking a debate on their efficacy.

While some favour total lockdown because it can protect lives, others think that a lockdown would destroy livelihoods and thus lives.

A lockdown was necessary to help India develop its healthcare infrastructure to deal with the Covid-19 crisis. Now that is in place along with treatment protocols, there is no need for another lockdown, opine many.

World Bank view

“I think in countries like India, a very big challenge to the lockdown approach has been the informal sector, she told ET.

There are ways of addressing, perhaps less extreme forms of lockdown that allow for some flexibility. But vaccines alone have to still be supplemented with health emergency measures, she said, adding “I have no doubt that that is still the case. And I do think the big challenge remains the tension between needing to work for survival and the tension of containing the pandemic.”

“The informal economy has been and continues to be a big challenge for India but I would say vaccines alone, at this stage, don’t do it. You still need the other protection mechanisms of social distancing and the like,” she said.

Lancet Commission

The Lancet Covid-19 Commission India Task Force has not recommended a blanket national or state lockdown, as opposed to localized, phased restrictions or closures.

Its report said the experience of the past year has shown that economic closures are most disruptive to the poorest sections of the society. In urban areas, daily wage earners, informal sector workers, and low-skill workers are the most likely to be impoverished from disruptions in economic activities.

Yet, experience from other countries has shown that lockdowns do assist in bringing down transmission rates.

Middle approach

A middle ground approach will be needed in India. “We recommend that in areas of high infection rates, the focus is on breaking the chain of transmission through local actions. We recommend that advisories be issued that strongly encourage anyone that can to remain at home (white collar workers, for example, who can work from home) to do so”, the report said.

“We also recommend that venues that host large congregations should be closed, and activities that encourage large gatherings should be banned”, it added. But restrictions on the movement or work of the working urban and rural poor should be minimized and locally determined through the creation of micro-containment zones in high case-load areas.

Localised trends

Decisions on local lockdowns or curfews are best left to local authorities and must be based on localised trends in epidemiological data (transmission, test positivity rates, hospitalisation, and mortality rates). These decisions should be made after in-depth consultations with local businesses, community leaders, and workers associations.

More importantly, extra care needs to be taken in terms of testing and vaccinations to ensure that workers are protected and are safe during this current phase of the pandemic, the report said.

The central government take

Union Health Secretary Rajesh Bhushan had written to Maharashtra Chief Secretary Sitaram Kunte stating that the state’s focus should be on strict and effective containment, not the imposition of a lockdown.

“Measures such as night curfews, weekend lockdowns, have very limited impact on containing/ suppressing the transmission. Hence the district administration should focus on strict and effective containment strategy,” Bhushan wrote.



[ad_2]

CLICK HERE TO APPLY