Competition Commission paper on blockchain tech spells regulatory risk
Major financial bodies are looking more seriously at blockchain, the underlying technology of cryptocurrencies like bitcoin. The Competition Commission of India (CCI), in collaboration with EY, recently came out with a discussion paper on blockchain and its legal ramifications. The 50-page document, which has been reviewed by Business Standard, retains the government’s stand to allow innovation in blockchain but points to regulatory risks as this technology proliferates.
“Given the decentralized nature of blockchains, there may not be any identifiable host, or an operator and the nodes may be spread across the globe with transactions occurring between the nodes located in different jurisdictions. Therefore, in case of any legal, policy or regulatory issue, it is difficult to understand which jurisdiction’s policies and regulations may apply,” the paper notes.