The Indian cryptocurrency scene remains uncertain due to upcoming government regulations.
According to reports, the Indian government intends to impose restrictions on self-depositing cryptocurrency wallets. The government also wants to allow only Indian crypto exchanges to operate in the country.
However, the CEO of WazirX, Nischal Shetty, stated that restrictions on self-depositing cryptocurrency wallets in the country may be difficult to implement. He said this in a recent interview, where the topic of India’s regulatory actions is at the center:
“I don’t think you can ban the use of software. Self-depositing wallets are just software. Without self-custodial wallets, you will not be able to interact with many of the decentralized services.”
Shetty added that as an industry, they would never recommend banning wallets for self-custody in India:
“If we want regulation, regulated services must be in India. These services must comply with the rules and regulations of our country.“ He added that „jede Nation, which regulates crypto, a similar approach pursue“ and stressed that “all exchanges [ihre] Companies can also register in India.“
When asked about the regulation of cryptocurrency exchanges, Shetty said that the government expects centralized exchanges to follow the Indian law. It was the least one could expect from a company that serves Indians. He came to the conclusion:
“We strongly support the competition. If a product or service does not meet the requirements, competition will slow you down. But the competition should be fair. When the regulations are introduced, each exchange must adhere to them and compete. Let’s build the best crypto ecosystem in India. Positive regulation will help the Indian crypto ecosystem grow rapidly. We See Good Progress in Crypto regulation.”
India remains one of the largest markets in the cryptocurrency space. The cryptocurrency market in India has grown, and the government is trying to regulate the activities of investors, developers and other market participants.