The cryptocurrency sector in India is still operating under uncertainties, as the government has yet to decide how to treat cryptocurrencies.
The Indian government will propose a new cryptocurrency law to the parliament. Recent reports have shown that the government wants to ban private cryptocurrencies. However, the CEO of cryptocurrency exchange Zebpay said that it is highly unlikely that the government will ban cryptocurrencies.
Instead, he explained that the government would instead try to regulate cryptocurrencies. Avinash Shekhar, co-CEO of Zebpay, told CNBC’s Squawk Box Asia that the government could potentially introduce tougher rules for cryptocurrencies. He stressed:
“I believe that we will have a coherent regulation, but on the tougher side. The voices we are hearing from the government are that they are looking for some kind of regulation, for strict regulation, but not for a complete ban.”
The central bank of India also wants to introduce a digital rupee, as numerous central banks around the world are starting to work on their digital currencies. Apex Bank plans to launch a pilot project of its digital currency in the second quarter of next year.
Shekhar explained that the government’s opinion on cryptocurrencies has changed in recent months after consulting with various interest groups.
Earlier this year, the government had planned to ban cryptocurrencies and penalize citizens of India with fines for trading in cryptos or holding the assets. However, since then, the government has changed its stance and is now trying to heavily regulate the crypto space and discourage people from investing by imposing high capital gains and other taxes.