Nischal Shetty, CEO and Co-Founder of India’s Largest Cryptocurrency Exchange, WazirX, Shares Alarming “Unconfirmed Reports” on India’s Upcoming Crypto Crackdown
- Will India become China in its own right?
- When competition meets regulation
Nischal Shetty, who is also the founder and keynote speaker of the India wants crypto movement, shares his take on the prospects for India’s much-anticipated cryptocurrency law.
Will India become China in its own right?
According to Mr Schetty’s latest thread, there are “unconfirmed” reports of the most crucial regulations that could be included in India’s new crypto bill.
There have been unconfirmed reports that:
1. “Self-Service Wallets” May Not Be Allowed Under India’s Crypto Bill
2. Only Indian exchanges can be used
Some people take the opportunity to denigrate the Indian crypto ecosystem
Read the thread below to understand
– Nischal (WazirX) ⚡️ (@NischalShetty) December 3, 2021
First, India could ban the use of “self-held” cryptocurrency wallets. As such, operations with decentralized (on-chain) portfolios may be prohibited by Indian regulators.
Then, only exchanges with Indian registrations will be allowed in the country.
Mr. Schetty, however, is certain that the use of software (in this case, decentralized crypto wallets) cannot be prohibited. Additionally, restricting this class of wallets will prohibit Indians from interacting with the majority of Decentralized Financial Protocols (DeFi).
At the same time, foreign cryptocurrency services are unlikely to follow the rules set by Indian financial regulatory watchdogs.
When competition meets regulation
As such, the Indian crypto community should build their own reliable infrastructure. Positive regulation can accelerate this progress, concluded Mr. Schetty:
We are seeing good progress with Crypto regulation. The entire crypto industry has been working on it for 3 years.
As covered by U.Today previously, Indian politicians and commentators are sending mixed signals on their plans to regulate the crypto segment. On November 23, 2011, India made headlines with its intention to ban all cryptocurrencies except Rupiah-linked CBDCs.
Two days later, it was announced that India was not considering banning all “private cryptocurrencies”. This sphere will be regulated by the Securities and Exchange Board of India (SEBI).