Countries in the Asia-Pacific (Apac) region have a more accommodating regime for fintech companies than others, said Blake, a member of the WEF executive committee.
Citing a January 2024 report by the WEF and the Cambridge Centre for Alternative Finance, he said that around 70% of fintech entrepreneurs surveyed gave the regulatory environment in the APAC region a favorable rating, higher than the global average of 63%.
“If you are a regulator, understanding the technological innovations that are happening (at a rapid pace) and then applying an appropriate framework to try to protect people from scams is not an easy task,” Blake told ET in an interview.
In India, the Reserve Bank of India (RBI) and others regulators “The Finance Ministry seems to be having regular discussions with the relevant sectors,” he said. “I feel there is a willingness to self-regulate. I think these are good steps,” he added.
There are cases of fraud committed by those seeking to take unfair advantage of innovation. “So the regulator has to find a way to not commit fraud,” Blake said. “But ultimately, it seems that entrepreneurs and regulators are on an equal footing. The question is whether the regulatory environment will become stricter if we see more fraud.”
In India, fintech regulation has come under increased public scrutiny in recent months after the RBI imposed restrictions on Paytm Payments Bank Ltd, reportedly due to the entity’s non-compliance with KYC norms and money laundering concerns, among others.
A dynamic economy
The Indian economy is expected to remain “robust,” contributing significantly to global growth, Blake said. However, inflation and high interest rates, which are overall global challenges, could pose a risk to growth, he said.
The International Monetary Fund projects India’s growth in fiscal 2024 to reach 6.7%, more than double the global average.
The Challenges of Cryptography
Blake said the Center for Financial and Monetary Systems will release a research report on digital assets in the coming months, which will allow policymakers still deliberating on what to do to make informed decisions. crypto assets.
He said his team is studying digital asset policies and regulations in different jurisdictions, including the UAE, Singapore, the US, Europe and a few others, and assessing the intended and unintended consequences arising from these regulations.
India’s effort to put in place a global framework to regulate crypto assets, given the cross-border nature of such transactions, is a “laudable” goal to pursue, Blake said.
Currently, different jurisdictions have adopted different regulatory standards for cryptocurrencies and some have banned them outright, he added.