India may tighten crypto restrictions rather than outright prohibit it, a crypto exchange CEO said. India is preparing to introduce a new cryptocurrency bill in the country’s parliament. And investors are scrambling to figure out what this means for the future of virtual currencies. In South Asia’s most populous country.
According to a top executive of Zebpay, one of India’s major cryptocurrency exchanges. Lawmakers may ultimately prefer to place strict rules on the cryptocurrency market. Rather than outright banning private coins.
The co-CEO of Zebpay, Avinash Shekhar, stated in an interview with CNBC’s “Squawk Box Asia”. On Thursday that he believes “we will have some form of consistent regulation, but on the stricter side.”
According to a parliamentary bulletin dated Nov. 23, the government intends to introduce a new measure. Aimed at regulating digital currencies when Parliament resumes its winter session on Monday. Which will be the first time since 2013.
India is attempting to outlaw the majority of private cryptocurrencies through the passage of that legislation. As well as to build a framework for the creation of an official digital currency. To be issued by the Reserve Bank of India. The bulletin stated that it will enable “for specific exceptions. To be made in order to promote the underlying technology of cryptocurrencies and its applications.”
The Reserve Bank of India is considering the introduction of a digital Indian rupee. With a trial program expected to begin as India may tighten Crypto in the second quarter of 2022.
According to Shekhar, the government’s stance on cryptocurrencies has shifted in the recent eight to nine months. As a result of consultations with various stakeholders, including crypto exchange operators.
The government has been quite positive
“The administration has been sending out a lot of positive vibrations lately. “We had a meeting with the finance committee of Parliament. A couple of weeks ago,” he explained. It appears that the government is seeking some type of control. Stringent restriction, but not a complete ban — and is sending us signals in that direction.
According to Reuters, quoting a senior government official, India was proposing a bill. That would ban cryptocurrencies and punish anyone who traded them. In the country or even held such digital assets.
Since then, according to the news agency, New Delhi has shifted its position slightly and is now attempting. To prevent cryptocurrency trade by charging high capital gains and other taxes.
As part of the Australian Strategic Policy Institute’s The Sydney Dialogue this month. Prime Minister Narendra Modi stated that all democratic nations must work together on crypto to. “Ensure it does not end up in the wrong hands, which can spoil our youth.” He added that all democratic nations must work together on crypto to “ensure it does not end up in the wrong hands, which can spoil our youth.”
When questioned by the Hindustan Times whether India should create its own cryptocurrency. Finance Minister Nirmala Sitharaman allegedly responded, “We have to be cautious. But we have to think it thoroughly.”
Shekhar from Zebpay stated that officials have been talking about strict laws. Because “they want to obviously regulate this and prevent crypto from becoming a currency, so to speak,” he explained.