Ripple, the enterprise blockchain solution for global payments, on Thursday urged the policymakers not to ban cryptocurrency or crypto-assets before formally engaging with industry on this issue.

“Our first ask to Indian policymakers is not to introduce a ban on crypto-assets without formal consultation process with industry. Industry consultation is required so that policy makers can understand the benefits of digital assets and assess risk and see how they can be mitigated,” said Sagar Sarbhai, Head of Regulatory Relations, APAC and Middle East, Ripple.

He also highlighted that India had, in recent years, taken mature approach to introducing policy frameworks. All big policy decisions went through formal consultation process with key stakeholders, he added.

Ripple, on Thursday, released a policy paper, ‘The Path Forward for Digital Assets Adoption in India’. The paper proposes how India’s policymakers can utilise the opportunity afforded by the recent Supreme Court verdict in the “Internet and Mobile Association of India ( IAMAI) versus Reserve Bank of India” to follow the lead of other markets and enact a transparent, principles-based and proportionate regulatory framework for the digital asset ecosystem in India.

Navin Gupta, Managing Director, South Asia & MENA, Ripple, said that responsible usage of blockchain technology and digital assets can introduce tremendous potential to the Indian economy. “Now is the time for India policymakers to take forward-looking approach that many other jurisdictions in Asiasuch as Singapore and Japan, have taken,” he said.

Ripple has urged Indian policymakers to adopt a digital asset taxonomy consistent with global practice — providing clarity to the legal character of digital assets.

Ripple’s policy paper also made a case for implementation of conducive regulatory framework for digital assets by amending specific financial sector laws — for example, empower SEBI to licence, regulate and supervise digital asset service providers.

Sarbhai also said that India should enact a facilitative framework for digital asset service providers at the Gujarat International Finance Tec-City (GIFT) in the short term.