India needs regulatory clarity, says CoinSwitch CEO
India remains one of the leading cryptocurrency markets in the world despite the regulatory uncertainties in the country.
The CEO of India’s largest cryptocurrency exchange wants regulatory clarity that would benefit companies and investors in the country.
Ashish Singhal made this call on Sunday, stating that regulatory clarity would do wonders for the Indian cryptocurrency market. At the World Economic Forum in Davos, Singhal told Reuters;
“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.”
CoinSwitch is currently the largest cryptocurrency trading platform in India, with over 18 million registered users. The company is valued at $1.9 billion and is backed by Andreessen Horowitz, Tiger Global, and Coinbase Ventures.
The cryptocurrency space in India remains unregulated. Earlier this year, the government proposed a 30% tax on cryptocurrency transactions. The move has been met with numerous oppositions in the Indian crypto community as many believe it will do more harm than good.
The Indian cryptocurrency community, like many across the world, is clamouring for regulation that would protect investors while also ensuring that innovation continues to thrive in the emerging market.
The governor of the Reserve Bank of India, Shaktikanta Das, has mentioned his dislike of cryptocurrencies numerous times over the years. Earlier this year, Das said private cryptocurrency was a big threat to India’s macroeconomic stability and financial stability.
The regulatory uncertainty in India has been widely felt. Last month, Coinbase, one of the largest crypto exchanges in the world, launched in India. However, Coinbase had to pause operations as it didn’t have the necessary requirements to use a state-backed inter-bank fund transfer service.
Earlier this month, Coinbase CEO Brian Armstrong said the move was triggered due to informal pressure from the Reserve Bank of India.