Regulators Shouldn't Hinder Innovation, Says CEA Anantha Nageswaran on Crypto and Gaming

Nageswaran expressed that the regulatory bodies must also adhere to the same principles of transparency and accountability with which they keep their supervisors at bay. Chief Economic Advisor (CEA) V. Anantha Nageswaran has pitched for further self-accountability among regulators, admonishing them to balance stimulating innovation with managing social costs. In his address to the 2024 Global Economic Policy Forum, organized by the Ministry of Finance and the Confederation of Indian Industry (CII), Nageswaran stressed the regulatory transparency and accountability across such sectors as cryptocurrency, online gaming, and emerging technologies..

“In India, where there is extensive financial illiteracy, regulators need to distinguish between not standing in the way of moonshots and identifying sectors where we need to be more conscious of social costs and benefits, whether it is crypto, bitcoins, or online gaming,” Nageswaran said.

He stressed that regulators must lay down clear criteria to ensure no choking of innovation in the name of societal objectives for economic activities. 

Nageswaran also stated that regulators should adhere to the same levels of transparency and accountability that they expect from the entities they regulate. 

“The same principle of transparency and social cost benefits that we want to apply to regulated entities and some of their financial innovations should also apply to the regulators themselves,” he said, stressing the need for regulators to actively share information and evaluate their own actions.

He also talked about the difference between elected and unelected powers. He added that unelected powers are not held accountable like elected ones and hence impose this upon themselves. Covering unparalleled Indian businesses and economics.