India's cryptocurrency sector is on tenterhooks as it awaits the introduction of new regulations. As the government plans legislation that could ban payments using digital currencies such as Bitcoin, speculation about the rules has rattled many investors and industry insiders.
However, others remain hopeful the government will not go so far as a ban and it will leave scope for the sector to flourish by bringing in some much-needed certainty.
“We do not think that a blanket ban on the cryptocurrency ecosystem is likely to happen,” says Edul Patel, chief executive and co-founder of Mudrex, a cryptocurrency investment platform.
The cryptocurrency ecosystem is currently “a grey area” in India, Mr Patel says.
“The crypto regulation bill is massive progress in the right direction,” he says. “The lack of regulation had been a hindrance to the growth of this sphere in India for a long time. Regulation would allow clear guidelines allowing the sector to boom – investors looking to invest would also be comfortable in entering the sector.”
A brief official description of the proposed bill released ahead of the current session of parliament, which began last week, stated it “seeks to prohibit all private cryptocurrencies in India”, but that it also “allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”.
In addition, the bill aims to establish a framework for “the creation of the official digital currency to be issued by the Reserve Bank of India”.
India's finance minister, Nirmala Sitharaman, last week said the country had no plans to recognise Bitcoin as a currency and that the new bill was being worked on. With the new regulation, the government may treat cryptocurrencies as a financial asset, while enforcing an official ban on their use as legal tender, Bloomberg reported.
Local media, including Indian business newspaper Mint, on Thursday reported sources as saying that instead of imposing a ban, the government could bring cryptocurrencies under a regulatory framework, which would ease some of the concerns in the market.
As is the case with many countries, authorities in India are grappling with how to regulate cryptocurrencies. They have long expressed concerns that virtual currencies could be used for illegal purposes such as money laundering or that they could threaten the stability of the country's financial system and pose a risk to investors.
But cryptocurrencies, including Bitcoin and Ethereum, have gained traction in India, particularly after the Supreme Court last year reversed a 2018 order by the RBI that had prohibited banks from dealing with transactions related to digital assets.
India is one of the biggest markets for cryptocurrencies in the Asia region and one of the fastest expanding in the world, growing 641 per cent between July 2020 and June 2021, according to a report by cryptocurrency research firm Chainalysis.
There are up to 20 million cryptocurrency investors in India, with holdings totalling some 400 billion Indian rupees ($5.3bn), according to industry estimates and reported by Reuters.
“Cryptocurrency is getting widely adopted around the world, as the high rate of returns is luring many investors towards investment in crypto coins, despite it being highly volatile and risky,” says Hemang Jani, head of equity strategy, broking and distribution at Mumbai-based Motilal Oswal Financial Services.
India has 15 home-grown cryptocurrency exchange platforms, propelled by the country's young, tech-savvy population, data from Motilal Oswal Financial Services shows.
“Crypto investment is not only limited to metros but is garnering a lot of interest from the young population in smaller cities,” says Mr Jani.
While “there is lot of uncertainty … the government is making efforts to soon put out proper regulation with regards to crypto investment as it is quickly getting widespread across India”, he adds.
But when the news emerged last month that the proposed bill would be tabled in parliament, a wave of investors panicked and sold off some of their cryptocurrency holdings. This resulted in digital currencies on Indian exchanges slumping as much as 25 per cent compared with other markets globally.
“A short-term panic selling was witnessed during the first two to three days of the crypto bill announcement where prices plummeted on Indian exchanges, but the prices stabilised shortly and are in sync with global markets as we speak,” says Shivam Thakral, co-founder and chief executive of BuyUcoin, a Delhi-based cryptocurrency exchange that started operations in 2016.
Mr Thakral remains upbeat that the government will come up with a system that will ultimately benefit the industry.
“We need a positive regulatory framework urgently to protect the interest of a large number of investors in India,” says Mr Thakral. “There is a plethora of talent ripe for disruption in the crypto industry, lawmakers need to ensure the growth of the crypto sector while also protecting the interest of an average investor.”
Full details of India's cryptocurrency bill have yet to be released and it will have to go through parliament for clearance, so it remains unknown what will emerge in the final law.
The situation is “scary” for investors and a ban could mean “that we will not be able to convert our local currency into buying any kind of cryptocurrency”, says Raj Kapoor, founder of the India Blockchain Alliance and a cryptocurrency investor.
Ultimately, it still remains to be seen what the government will finally decide and there are other regulatory solutions that would make far more sense than a ban, he says.
“I believe that, though there is a lot of uncertainty, we are at a stage where fear of a complete ban has been replaced and rightly so by an anticipation of a rational policy where investor interest and government interests can seamlessly coexist.”
Cryptocurrency investor Srinivas Handadi holds virtual coins including Bitcoin, Ethereum, Cardano and Polygon.
When cryptocurrencies slumped in India recently, Mr Handadi says he “used the dip to buy more”.
A ban would be “difficult” to enforce and it is more likely that the government “will start working with other countries to understand crypto”, he adds.
Despite the lack of clarity, foreign cryptocurrency companies have been moving to capitalise on the Indian market.
“When OKEx entered the Indian market early this year, we were optimistic about India’s strong policy framework,” says Jay Hao, chief executive of Seychelles-based cryptocurrency exchange OKEx. “We are now finally witnessing India’s crypto policy taking shape to ensure a better future for the entire crypto ecosystem in India.”
Crypto investment is not only limited to metros but is garnering a lot of interest from the young population in smaller cities
Hemang Jani,
head of equity strategy, broking and distribution at Motilal Oswal Financial Services
Once the regulation is in place, Mr Hao expects to see more foreign exchanges enter India, which will help to advance the sector and create jobs.
“The global crypto community will be closely monitoring the situation in India as we go into the finer details of India’s crypto law,” Mr Hao says.
Singapore-based cryptocurrency exchange Coinstore just last week started operations in India, seemingly unperturbed by the possibility of a clampdown.
“With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market,” Charles Tan, Coinstore's head of marketing, told Reuters.
As plans to regulate the sector remain a work in progress, India is also planning to have its own official digital currency.
Central banks in other countries, including China, are working on creating digital currencies and the RBI is expected to start piloting India's digital currency as soon as next year.
Industry experts say this would be a welcome development.
“One important thing to note regarding Central Bank Digital Currencies is the fact that they are not cryptocurrencies. These are digital forms of fiat money, under the total control of the central banks,” says Mr Patel.
Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
The specs
Engine: 2.0-litre turbo 4-cyl
Transmission: eight-speed auto
Power: 190bhp
Torque: 300Nm
Price: Dh169,900
On sale: now
More coverage from the Future Forum
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%3Cp%3EDavid%20White%20might%20be%20new%20to%20the%20country%2C%20but%20he%20has%20clearly%20already%20built%20up%20an%20affinity%20with%20the%20place.%3Cbr%3E%3Cbr%3EAfter%20the%20UAE%20shocked%20Pakistan%20in%20the%20semi-final%20of%20the%20Under%2019%20Asia%20Cup%20last%20month%2C%20White%20was%20hugged%20on%20the%20field%20by%20Aayan%20Khan%2C%20the%20team%E2%80%99s%20captain.%3Cbr%3E%3Cbr%3EWhite%20suggests%20that%20was%20more%20a%20sign%20of%20Aayan%E2%80%99s%20amiability%20than%20anything%20else.%20But%20he%20believes%20the%20young%20all-rounder%2C%20who%20was%20part%20of%20the%20winning%20Gulf%20Giants%20team%20last%20year%2C%20is%20just%20the%20sort%20of%20player%20the%20country%20should%20be%20seeking%20to%20produce%20via%20the%20ILT20.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20is%20a%20delightful%20young%20man%2C%E2%80%9D%20White%20said.%20%E2%80%9CHe%20played%20in%20the%20competition%20last%20year%20at%2017%2C%20and%20look%20at%20his%20development%20from%20there%20till%20now%2C%20and%20where%20he%20is%20representing%20the%20UAE.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20was%20influential%20in%20the%20U19%20team%20which%20beat%20Pakistan.%20He%20is%20the%20perfect%20example%20of%20what%20we%20are%20all%20trying%20to%20achieve%20here.%3Cbr%3E%3Cbr%3E%E2%80%9CIt%20is%20about%20the%20development%20of%20players%20who%20are%20going%20to%20represent%20the%20UAE%20and%20go%20on%20to%20help%20make%20UAE%20a%20force%20in%20world%20cricket.%E2%80%9D%C2%A0%3C%2Fp%3E%0A
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
UAE%20SQUAD
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Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The Gentlemen
Director: Guy Ritchie
Stars: Colin Farrell, Hugh Grant
Three out of five stars
Itcan profile
Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
Real Madrid 1
Ronaldo (87')
Athletic Bilbao 1
Williams (14')
ESSENTIALS
The flights
Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes.
The trip
From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.
