CoinSwitch Chief Urges Regulators to Regulate the Industry

Indian authorities should remove regulatory uncertainty surrounding cryptocurrencies by crafting rules that protect investors and spur the industry. CoinSwitch CEO Ashish Singhal said this at the Davos Economic Forum, according to Reuters.

“Users do not know what will happen to their assets—whether the government will ban them, what oversight will exist… Regulation will bring calm and greater certainty,” he explained.

According to Singhal, the government’s measures on taxation of digital assets and the regulation of corresponding marketing campaigns have outlined a framework, but that is not enough. He emphasised that India needs a single code of laws.

Singhal explained that the latter should also set KYC standards and the transfer of digital assets. He said the country also needs to develop a system that will allow tracking of transactions on the blockchain and transmitting information about them to government authorities.

Over the past years, Indian authorities’ statements regarding cryptocurrency legislation have ranged from a blanket ban, even with criminal liability, to possible regulation as assets.

In November 2021 the RBI expressed “serious concerns” about cryptocurrencies in the context of macroeconomics and financial stability.

In January 2022, Prime Minister Narendra Modi urged the development of a unified approach in forming the regulatory framework for the crypto industry.

In April, India imposed a 30% tax on profits from cryptocurrency transactions and a controversial 1% levy under the Tax Deducted at Source (TDS) regime. Later, media reported plans by authorities to increase the tax burden on the sector.

Earlier in May, the Computer Emergency Response Team issued a directive requiring crypto exchanges to store customer data for five years. Authorities say this is intended to curb tax evasion.