Avinash Shekhar thinks the Indian government would regulate cryptocurrencies but will not outright prohibit them.
Avinash Shekhar, CEO of cryptocurrency exchange Zebpay, warned that Indian politicians are more likely to place stringent regulations on digital assets than to outright restrict their use.
The executive stated that regulation of the industry is vital since it has the potential to attract a large number of inventors and multibillion-dollar enterprises.
To put it mildly, India’s cryptocurrency landscape is contentious. The authorities of South Asia’s biggest economy have shifted their position on the issue multiple times during the last few years. They even considered criminalising the use of bitcoin and other digital currency at one time.
This week, the government demonstrated its continued determination to clamp down on the asset class. In a similar fashion to China, India’s proposed measure sought to prohibit the use of private tokens in favour of its own state-controlled CBDC:
“The Bill also intends to restrict the usage of private cryptocurrencies in India, but makes specific exceptions to encourage the underlying technology and applications of cryptocurrency.”
This phase, according to Zebpay’s CEO, Avinash Shekhar, is overdone. In a recent interview with CNBC, he said that he sees “a lot of favourable vibrations from the government,” implying that an outright prohibition is not on the table:
“The message we are receiving from the government is that they are seeking some kind of regulation, preferably stringent restriction, but not an outright prohibition.”
Imposing a robust regulatory structure on the business, Shekhar noted, may benefit the country. He stated that the move will attract a large number of innovators and established organisations that are unwilling to enter the cryptocurrency field without rules:
“With the introduction of regulation, I believe it will be a significant sector where multibillion-dollar enterprises will be developed.”
India’s Prime Minister Narendra Modi also emphasised the significance of enacting regulatory regulations governing the digital asset business. He implied that many criminals will continue to use bitcoin and altcoins in the absence of a worldwide regulatory framework.
Modi believes that the process should involve democratic-minded countries such as India, Australia, and others in the Indo-Pacific region and beyond. They must create mutual cooperation and operate in concert.
Also Read: The Australian Taxation Office Asserts That It Cannot Depend On Cryptocurrency Users’ Own Records
Wallets