Crypto Exchange Boss Says India Could Tighten Cryptocurrency Rules Instead of Imposing Full Ban

Crypto Exchange Boss Says India Could Tighten Cryptocurrency Rules Instead of Imposing Full Ban

India is about to propose a new cryptocurrency bill to Congress, and investors are trying to understand what this means for the future of virtual coins in South Asia's largest economy. 

According to an executive at Zebpay, one of India's largest cryptocurrency exchanges, legislators could impose stricter regulations on the cryptocurrency market instead of banning private coins entirely. "We think there will be some kind of negotiated regulation, but we'll look at it on a tighter side," Zebpay CEO Avinash Shekhar told CNBC's Squawk Box Asia on Thursday. 

According to a November 23 parliamentary vote, the government said Monday that it plans to introduce new legislation to regulate digital currencies when Parliament begins its winter session. The bill seeks to ban most private cryptocurrencies and lay the groundwork for the creation of an official digital currency to be issued by the Central Bank of India. However, "with a few exceptions to promote the underlying cryptocurrency technology and its use," the newsletter says. ... we're looking for some kind of regulation, strict regulation from the government, but we get the feeling it's not a complete ban. 

The central bank is considering introducing a digital Indian rupee with a trial version available in the second quarter of 2022. In an interview with CNBC, Shekhar said the government's stance on cryptocurrencies has changed over the past eight to nine months after the government consulted with various stakeholders, including operators of cryptocurrency exchanges. “The government has evoked a lot of positive emotions. “I met the National Assembly Finance Committee about two weeks ago,” he said. "The message we're getting from governments is that they're looking for some sort of regulation. 

Strict regulation, but not a complete ban." In March, India was considering legislation to ban cryptocurrencies and penalize anyone who trades or owns such digital assets in India, Reuters reported, citing a senior government official. Since then, New Delhi has changed its stance slightly and is now trying to curb cryptocurrency trading by introducing significant capital gains and other taxes,  the news agency said. Prime Minister Narendra Modi gave a keynote speech at the Australian Institute for Strategic Policy  Sydney dialogue meeting this month, and all democracies should work together to avoid falling into the wrong hands on cryptocurrency. Youth ". " When the Hindustan Times asked Finance Minister Nirmala Sitaraman if India should have its own cryptocurrency, she said, “You have to be careful. But we have to think about it." Zebpay's Shekhar said officials were talking about strict rules. “Because they want to clearly control this and they don’t allow cryptocurrencies to become currencies, so to speak.” he has potential This regulation should take into account the needs of Indian individual investors. 

There are currently no official data, but media reports suggest there are between 15 and 20 million cryptocurrency investors in India. “The other aspect that isn't talked about too much is technological innovation,” Shekhar said, adding that many innovators are still waiting to enter the crypto market. “It’s an area where we think there will be multi-billion-dollar companies in India,” he added.