Avinash Shekhar – Chief Executive Officer of the cryptocurrency exchange Zebpay – predicted that the Indian lawmakers are more likely to impose tough rules on the digital assets than prohibit their usage.
The exec added that regulation in the sector is necessary as it could bring many innovators and multibillion-dollar companies.
The Vibes Do Not Indicate for a Total Ban
The cryptocurrency environment in India is controversial, to say the least. The authorities of the largest economy in South Asia have been changing their stance on the matter numerous times over the past few years. At some point, they even wanted to criminalize the usage of bitcoin and other digital currencies.
Earlier this week, the government once again showed its intentions to crack down on the asset class. Similar to China, India’s proposed bill aimed to ban the usage of private tokens in favor of its own state-controlled CBDC:
“The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
According to Zebpay’s boss – Avinash Shekhar – this step is exaggerated. In a recent interview for CNBC, he said he sees “lots of positive vibes from the government,” leading to the conclusion that an outright ban is not on the agenda:
“The message which we are getting from the government is that they’re looking for some kind of regulation, strict regulation, but not a complete ban.”
Imposing a comprehensive regulatory framework in the industry could be beneficial for the country, Shekhar added. He explained that the move would attract many innovators and giant institutions, which are not ready to delve into the cryptocurrency space without rules in it:
“With regulation coming in, I think that will be a major area where I think multibillion-dollar companies will be created.”
Without Regulation, Crypto Could Land in The Wrong Hands
Narendra Modi – the Prime Minister of India – also highlighted the importance of implementing regulatory policies around the digital asset industry. He suggested that many criminals will continue using bitcoin and the altcoins in case global regulators fail to incorporate a legislative framework.
According to Modi, the process should include nations with democratic visions such as India, Australia, and others in the Indo-Pacific region and beyond. They need to establish a mutual collaboration and act together.