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As we conclude 2023, the Indian and global crypto industry went through quite a few milestones in terms of regulatory developments.
In an exclusive interview with CryptoNews, Manhar Garegrat, the Country Head for India and Global Partnerships of Liminal Custody, shares insights into the company’s journey, collaborations with law enforcement agencies including the Central Bureau of Investigation (CBI), and how the Indian government is collaborating with the crypto industry.
Navigating the Regulatory Landscape in India
Discussing the evolving regulatory landscape in India, Manhar emphasized the country’s leadership role in shaping global crypto agendas. As a founding member of the Bharat Web 3 Association, Liminal Custody actively collaborates with regulators, government agencies, ministries, and departments. The company’s goal is to educate stakeholders about blockchain technology, control mechanisms, and the vast possibilities within the crypto space.
“We have actively worked very closely with as many regulators as possible as many government agencies, as many ministries as many departments to educate them about this technology and about all the possibilities that this technology offers.”
India’s proactive stance on the global stage, particularly at the G20 summit, reflects a positive shift from initial skepticism to an informed understanding of cryptocurrencies.
From Ban to Self-Regulation: India’s Crypto Journey
The Indian government has gone from calling for a complete crypto ban to encouraging self-regulation among crypto players this year. This progressive shift, where the central bank is calling for the industry to establish SROs is a positive development. The recent Chainalysis report highlighting India’s grassroots level adoption of cryptocurrencies further reinforces the industry’s significance.
The government’s increasing understanding of crypto technology is evident in the nuanced questions posed during discussions. Manhar said:
“I think the interest from the central government as well as state governments towards web three is increasing. We are seeing a lot of questions being raised in Parliament around Web3. Again, we’re seeing very articulate answers being given, so everyone understands that this is definitely the future.”
He added:
“I think broadly, if you look at all the players coming out of India and all the businesses that have any kind of India connections, almost everyone who’s a legitimate player wants regulations. They want regulations and they’ve been working to support the government in achieving this.”
Liminal Custody’s Role in Combating Crypto Frauds
Acknowledging the challenges faced by law enforcement agencies, particularly at lower levels, Manhar shares Liminal Custody’s experience in collaborating with these agencies.
The company has played a pivotal role in creating a standard operating procedure (SOP) and guidelines for law enforcement, addressing the lack of training and education in dealing with crypto-related crimes.
Liminal Custody earlier announced its partnership with Himachal Pradesh police in the multi-crore crypto scam that shook the nation. Liminal was picked to provide secure and compliant wallet solutions when law enforcement agencies are tasked with safeguarding seized digital assets.
Liminal Custody’s certification under the Cryptocurrency Security Standards (CCSS) and its contribution to the global standards have empowered law enforcement agencies to navigate the complexities of crypto investigations. Manhar emphasizes the need for continuous efforts in training law enforcement at all levels to mitigate frauds effectively.
Reflecting on collaborations with state governments, Manhar highlighted the excitement around Telangana’s proactive approach and vocal support for Web 3.0 initiatives, including discussions around tokenization, positioning it as a leader among Indian states. The collaborative process is characterized by openness, with governments keen to learn from industry players, creating a mutual exchange of knowledge.
Liminal Custody’s Global Expansion
Singapore-based Liminal Custody, established in April 2021, witnessed several milestones in 2023. Manhar highlighted the significant achievement of becoming one of the largest custody players in the Indonesian market, effectively displacing global giants. Liminal Custody collaborated with the Indonesian government to power the custody of sovereign cryptocurrency exchanges.
Beyond Indonesia, Liminal also engaged with governments and regulators globally. Notably, Liminal Custody received an in-principle approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi.
Looking Ahead to 2024
As Liminal Custody looks toward 2024, Manhar stressed on their core strategy – identify markets with potential and provide hyper-localized solutions. The company aims to deepen its presence in regions like Indonesia, Abu Dhabi, and India, with a focus on capturing emerging opportunities in the Middle East and Africa.
