Indian Crypto App CoinSwitch Chief Insists Clear Rules on Digital Coins

Key Insights:

• Clear crypto regulations in India could bring “peace and more certainty,” says CoinSwitch’s CEO. 
• He said crypto rules could solve regulatory uncertainty and safeguard investors.
• The Reserve Bank of India supported a crypto ban citing the threat to the country’s financial stability.

The cryptocurrency regulation is finding swathes of enthusiastic supporters across the globe, while it seems to be a real conundrum in India. Though the Indian government seems to have made a decision on crypto taxation, it is still struggling to draft a policy for the sector.

Additionally, the crypto sector in the country has been rapidly gaining popularity, especially among the young, in the recent past. For instance, per a Chainalysis report, India is reported to be one of the world’s fastest-growing crypto markets, increasing by 641% between July 2020 and June 2021.

CoinSwitch CEO seeks clarity on crypto regulation

Various crypto industry players in India have sought clarity from the government on crypto regulation. Even the Supreme Court of India recently asked the Centre to make a clear stand on whether bitcoin (BTC) is legal.

In the row, India’s top crypto app CoinSwitch’s chief Ashish Singhal on Sunday called for regulatory “peace and certainty.” He said that this could address the current uncertainty and safeguard crypto investors.

Speaking at the World Economic Forum in Davos, he expressed concerns that crypto holders in India face many uncertainties. He told Reuters,

“Users don’t know what will happen with their holdings – is government going to ban, not ban, how is it going to be regulated?”

Adding to it, he also stressed the importance of regulations. Singhal noted,

“Regulations will bring peace and more certainty.”

CoinSwitch, which recently delisted stablecoin TerraUST and LUNA after the collapse of the Terra network, boasts a market cap worth $1.9 Billion and over 18 million users. The Bengaluru-based firm is backed by A16Z, Tiger Global, and Coinbase Ventures.

However, CoinSwitch, along with other leading exchanges, disabled the rupee deposits, making it more difficult for users.

Addressing regulation gaps

According to Singhal, having ‘clarity’ in crypto regulations could offer assurance to holders and boost the country’s crypto sector.

Singhal noted that the recent taxation changes, new crypto advertising guidelines, and the recent curb on celebrity endorsements are still significant work to streamline the sector.

Global crypto exchange Coinbase launched in India in April. Weeks after the launch, it halted its usage of an inter-bank fund transfer service (UPI). The exchange’s CEO recently quoted the Reserve Bank of India and the government’s pressure over disabling the UPI payment service.

Singhal said that authorities have concerns over bad actors, given the decentralized nature of digital assets. Besides, the central bank also backed the banning of cryptocurrencies, citing financial instability. The RBI worried that cryptos might lead to the “dollarization” of an economy.

Singhal added,

“We are pushing for regulations. With the right regulation, we can get the clarity.”