CoinSwitch CEO Ashish Singhal has asked for a concise understanding of the regulatory framework to resolve the concerns and uncertainty surrounding cryptocurrencies in India.
“Users don’t know what will happen with their holdings – is the government going to ban, not ban, how is it going to be regulated? Regulations will bring peace … more certainty”, Singhal told Reuters at the World Economic Forum in Davos.
CoinSwitch, the Bengaluru-based crypto platform in India has more than 18 million users and is supported by Tiger Global, Coinbase Ventures and Andreessen Horowitz.
In February after the decision that cryptocurrencies in India will be subjected to a 30% capital gains tax, Reserve Bank of India governor Shaktikanta Das voiced his opinions on a private cryptocurrency.
He said: “Private cryptocurrency is a huge threat to macro-economic stability and financial stability… investors should keep this in mind that they are investing at their own risk.
“These cryptocurrencies have no underlying (value) – not even a tulip”, he added.
In April, two cryptocurrency exchanges, CoinSwitch and WazirX disabled their deposits in India claiming there was not enough regulatory certainty to continue providing a service.
Even though Bitcoin is a huge success in the country, it wasn’t enough for the exchanges so the decision to halt deposits was made.
Undeterred by the recent backout of major cryptocurrency exchanges, Singal remains positive.
“We are pushing for regulations”, Singhal said at Davos. “With the right regulation, we can get the clarity.”
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