In this first episode of Season 2 of the Proof of Work Podcast, I had an insightful conversation with Smarak Swain, Director of the FATF Cell at the Department of Revenue, Government of India. We discussed the critical need for RegTech in the evolving crypto space, major crypto frauds such as FTX and Terra Luna, and the global regulatory frameworks necessary for safeguarding investors and the broader financial system.
Smarak, with his extensive background in financial investigations, tax policy, and writing, shared his unique perspectives on the future of crypto regulations and the role of blockchain technology in tackling fraud and protecting consumers.
The Importance of RegTech in the Crypto Space
As the crypto industry matures, the need for robust regulatory technology (RegTech) to detect and prevent fraud becomes more urgent. Smarak and I discussed tools like TRM Labs and Chainalysis, which are already helping government agencies track the flow of illicit funds in the digital world. These innovations are laying the groundwork for a more regulated and transparent crypto ecosystem.
Reflecting on Major Crypto Frauds: FTX, Terra Luna, and WazirX
The past few years have seen some high-profile financial frauds in the crypto space, from FTX to Terra Luna and the recent WazirX hack. Smarak shared his thoughts on these incidents and their lasting impact on the global crypto market. He also emphasized the emotional toll these scams take on victims, who often feel trapped after losing their savings.
Global Regulations and India's Role
India’s leadership in pushing for global crypto regulations during the G20 summit was a major step forward in addressing the regulatory gaps surrounding digital assets. Smarak discussed India’s initiatives, highlighting the country’s drive to create common global frameworks to ensure more effective oversight of crypto transactions.
Blockchain Technology: A Solution for the Future
While many people equate blockchain with crypto, Smarak and I talked about the broader applications of blockchain technology. From ensuring data privacy to improving financial inclusion through fast payment systems, blockchain holds the potential to solve many of the challenges we face today, especially in developing economies.
Key Takeaways from My Conversation with Smarak Swain:
RegTech is essential for regulating the fast-growing crypto market and protecting investors from fraud.
High-profile incidents like FTX and Terra Luna show the need for global regulatory frameworks to manage the risks of decentralized finance.
India is playing a critical role in leading discussions on global crypto regulations, especially through the G20 platform.
Blockchain technology has applications beyond crypto, offering solutions for financial inclusion, privacy, and secure transactions.
Where to find Smarak Swain:
LinkedIn: Connect with Smarak Swain
Smarak Swain’s book, "Digital Fortunes": Digital Fortunes on Amazon
Smarak Swain’s previous book, "The Hawala Agent": The Hawala Agent on Amazon
In this episode, we covered:
00:00 - Intro
04:40 - Smarak Swain The Accomplished Writer
10:18 - Smarak Swain The Graduate Engineer
14:27 - Smarak Swain The Public Servant
19:43 - The incident that moved Smarak Swain
27:02 - Views on Finfluencer & High Yield Investment Scheme Frauds
41:01 - Views on WazirX Hack
1:06:15 - Smarak Swain's new book Digital Fortunes
1:28:18 - Views on Blockchain Technology
1:39:10 - One Advice To Your Younger Self
1:40:49 - Rapid Fire Round
Disclaimer:
Views expressed on the podcast are personal views of the host and the guests. The information provided is for informational purposes only. It is not intended to be, and should not be taken as, legal, tax, investment, financial, or any other form of professional advice.
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