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India may tighten rules rather than impose a complete ban, says Zebpey

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

According to top executives at Zebpay, one of India’s largest crypto exchanges, lawmakers may eventually choose to impose strict regulations on the crypto market rather than banning private coins altogether. I have.

Zebpay co-CEO Avinash Shekhar told CNBC’s “Squawk Box Asia” Thursday.

A parliamentary bulletin dated 23 November showed that the government plans to introduce a new bill aimed at regulating digital currencies as Congress begins its winter session on Monday.

Through that bill, India is banning most private cryptocurrencies and is trying to establish a framework for creating official digital currencies issued by the Reserve Bank of India. But it would allow “for certain exceptions, to promote cryptocurrencies and the underlying technology of their use,” the breaking news said.

… the feeling we get from the government is that they want some kind of regulation, strict regulation, but not a complete ban.

The central bank is considering a digital rupee that could start piloting in the second quarter of 2022.

Shekhar told CNBC that the government’s attitude towards cryptocurrencies has changed over the past eight to nine months after authorities have consulted with various stakeholders, including cryptocurrencies.

“There was a lot of positive atmosphere from the government. I met the Parliamentary Finance Committee about two weeks ago,” he said. “The message and impression we get from the government is that they are looking for some kind of regulation. It’s a strict regulation, but it’s not a complete ban.”

In March, India was considering a law banning cryptocurrencies and fined anyone trading domestically or holding such digital assets, Reuters quoted a senior government official. Reported.

Since then, New Delhi has changed its position slightly and is now trying to discourage cryptocurrency trading by imposing large capital gains and other taxes.

Prime Minister Narendra Modi gave a keynote speech this month at the Australian Strategic Policy Institute’s Sydney Dialogue to keep all democracies “out of the hands of malicious people who could ruin our youth.” “In order to do so,” he said he must cooperate with cryptocurrencies.

When Finance Minister Nirmala Sitharaman was asked by the Hindustan Times if India should have its own cryptocurrency, she said, “You have to be careful, but you have to ponder it.” It has been reported.

Zebpay’s Shekhar said authorities are talking about strict regulations because “they clearly control this and don’t want cryptocurrencies to be currencies.”

Read more about cryptocurrencies from CNBC Pro

He explained that potential regulation needs to address the needs of individual investors in India — there are currently no official data available, but media reports indicate that India has about 15-2,000. There are millions of crypto investors.

“The other less talked-about aspect is technology innovation,” she added, adding that many innovators are still waiting to enter the crypto market.

“When regulation is introduced, I think it will be a major area where we think billion-dollar companies will be born in India,” he added.

India may tighten rules rather than impose a complete ban, says Zebpey

Source link India may tighten rules rather than impose a complete ban, says Zebpey

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