India’s regulatory uncertainty for the crypto sector was set up during the ongoing annual meeting of the World Economic Forum (WEF) in Davos. In an interview with Reuters, CoinSwitch Kuber CEO Ashish Singhal highlighted the government’s policy dilemma over the industry.
“Users don’t know what will happen to their holdings – will the government ban, not ban, how will this be regulated? Singhal wondered. India needs to pass appropriate legislation to remove uncertainty, incentivize the crypto sector and protect investors, he added.
Singhal appreciated the Indian government’s ruling on tax and advertising guidelines for the crypto industry by the Advertising Standards Council of India (ASCI). However, according to media coverage, he said more needed to be done, including enacting a set of laws.
A mechanism to track transactions and report them to authorities when needed and standards for identity verification and transfer of crypto assets need to be established, he explained.
Coinciding with the fall in crypto prices, the Davos meeting saw a significant presence of blockchain and cryptocurrency companies, according to the report.
The political dilemma of the Indian government
The Indian government had twice announced legislation banning cryptocurrencies last year. But he flagged the plan and instead introduced a tax on income from those transactions. Many interpreted this “as a sign of acceptance” of digital assets. “Regulations will bring peace… more certainty,” Singhal said, as quoted by Reuters.
But the regulatory and tax environment has become even tougher in recent months. As a slew of new and higher taxes are being levied on crypto businesses, banking industry regulators have denied crypto exchanges access to instant interbank payment systems.
“We are calling for regulation. With the right regulations, we can get clarity,” he said.
Largest Indian Crypto Exchange
Singhal co-founded CoinSwitch Kuber with two others – Govind Soni and Vimal Sagar Tiwari – in 2017. In October 2021, the exchange raised $260 million at a valuation of $1.9 billion.
The funding round, the largest in the Indian crypto space to date, was led by Coinbase Ventures ($150m) and Andreessen ($80m). Currently, CoinSwitch, with over 18 million users, claims to be the largest crypto exchange in India.
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CoinSwitch CEO Presents Regulatory Clarity, Certainty & Peace At WEF, CoinSwitch CEO Offers Regulatory Clarity, Certainty & Peace
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