CoinSwitch CEO: “cryptocurrencies are unlikely to be banned in India”

Ashish Singhal, CEO of the CoinSwitch cryptocurrency exchange, believes that the likelihood of a ban oncryptocurrencies in India have decreased significantly compared to last year.

As The Economic Times previously reported,The Indian government has returned to the bill, which provides for a complete ban on the storage, sale, issue, transfer and use of cryptocurrencies. For violating this law, users of digital currencies could face up to 10 years in prison. This news has once again caused panic among the Indian cryptocurrency community.

However, according to Ashish SinghalSinghal), in 2019, the possibility of a complete ban on cryptocurrencies was much higher due to the lack of support from the Reserve Bank of India (RBI). This year the situation has changed - in May, the Central Bank of India clarified its attitude towards digital currencies and stated that it does not prohibit banks and other financial institutions in the country from servicing cryptocurrency firms. This comes after India's Supreme Court in March overturned the RBI's directive banning Bitcoin and other digital assets.

"The proposed bill is unlikely to be adopted.The government employs people who need to make an adequate decision, not just ban cryptocurrencies in the country.Otherwise, it will put under the impact of the legal firms, and the shadow business will continueexistence," Singhal said.

According to him, cryptocurrency fraud is the main reason why the Indian authorities are skeptical about digital assets.This should provide an additional incentive for the Government to improve regulation of the industry in order to protect the rights and means of users.Proper regulation will help that in India there will be more and more cryptocurrency firms wanting to legitimize their activities.

Singhal added that today the blockchain and cryptocurrency industrystill makes a significant contribution to the Indian economy, so banningdigital currency will have an instant impact.However, this industry is developing rapidly, and its prohibition can lead to an increase in unemployment in the country and the loss of opportunities for foreign investment.

The CEO ofCoinSwitch believes that the Indian government should take a step-by-step approach to the regulation of cryptocurrencies.First, it is necessary to ensure the safety of users and their tools, and then work out the provisions in which the tokens can beAccording to Singhal, it will take a fair amount of time, and a single bill"won't change everything."

Recall that in April, the CEO of CoinSwitch reported an increase in the activity of Indian traders after the ban on cryptocurrencies was lifted in India.

</p></p>