Avinash Shekhar, Co-CEO of cryptocurrency exchange Zebpay, suggested in a CNBC interview that the Indian government may opt for stringent regulations over an outright cryptocurrency ban. This follows a November 23 parliamentary bulletin indicating potential legislation to prohibit private cryptocurrencies domestically.
Shekhar’s insights stem from a recent meeting with the Parliamentary Finance Committee:
"The government has shown positive signals. During our discussion with the Finance Committee two weeks ago, the consensus was clear—they seek strict oversight, not prohibition."
India’s Regulatory Concerns
1. Monetary Competition Risks
The government fears private cryptocurrencies like Bitcoin could rival the Rupee. Unlike the state-controlled Rupee, decentralized cryptocurrencies pose volatility risks, potentially leading to financial losses for users.
2. Proposed Fiscal Deterrents
Instead of banning cryptocurrencies, India might impose heavy taxation on transactions to curb usage. Historical precedents show repeated threats to restrict crypto, yet adoption persists—raising questions about this proposal’s efficacy.
Global Cryptocurrency Landscape
While India deliberates restrictive measures, other nations are embracing digital assets:
- El Salvador & Palau: Recognize Bitcoin as legal tender.
- Australia: Approved cryptocurrency ETFs for investor access.
FAQ
Q: Will India ban all cryptocurrencies?
A: Unlikely. Authorities favor strict regulations over prohibitions, per Zebpay’s Co-CEO.
Q: How might India’s regulations affect crypto users?
A: Expect high taxes on transactions to discourage usage without outright bans.
Q: Which countries support private cryptocurrencies?
A: El Salvador, Palau, and Australia (via ETFs) are leading adopters.
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Note: This analysis refrains from political or promotional content, focusing on regulatory trends and user implications.