It was learned that the Indian Treasury had been there Distribute a “note” for inter-ministerial requests regarding cryptocurrency regulations, This triggered panic in the crypto community of India. Concern over the 2019 bill, which proposed a general ban on cryptocurrency and possible 10-year prison terms for cryptocurrency users, had started again.
In an interview with Cointelegraph, Ashish Singhal, founder and CEO of the Indian cryptocurrency exchange CoinSwitch said that The likelihood that the government will generally ban digital currencies has decreased significantly compared to 2019.
Singhal said that in 2019 when the bill was proposed The possibility of a ban seemed high because cryptocurrencies were not accepted by the central bank, the Reserve Bank of India (RBI). There was even a ban on crypto banking and things seemed pretty uncertain, he added.
It looks different this year. The Supreme Court’s lifting of the RBI ban on banking in March, followed by the central bank’s clarification that financial institutions are no longer banned from providing services to cryptocurrency-related companies, shows a change in the way they perceive cryptocurrencies in IndiaSinghal noted:
“At present, the bill has a low chance of approval. There are smart people in the government who would take the right steps forward instead of simply banning cryptocurrencies completely. “
Regulations are important for user protection and the growth of the industry
The main problem that the government is skeptical about the digital currency area is fraud and theft. Singhal said. It is all the more important for the government to give this industry better rules and guidelines and to strengthen user protection. That is the ultimate goal, he said.
When Singhal considered the possibility of a cryptocurrency ban, he explained that banning cryptocurrencies will certainly be easier compared to the correct regulations, but will only slow down legal activities while illegal actors can continue to do business.
Therefore, the proper rules would primarily benefit the legal side of cryptocurrency and blockchain companies.
Governments have to go step by step
Currently, the blockchain industry and cryptocurrencies only make a tiny contribution to the Indian economy, which is why the ban on cryptocurrencies may not affect the economy immediately. However, Singhal says it is a booming industry, and its cumulative impact over the years could lead to a huge loss of opportunities for foreign investment and more jobs.
To this end, he declared: At the moment, no one can be very sure how to regulate the cryptocurrency industry. Therefore, governments must take a step-by-step approach, first ensuring the security of users and their funds, and then guiding values, public services and and tokens, and guiding users in the right direction. In the end he said:
“It will take time. A single regulation or bill won’t change everything.”