India might tighten crypto rules instead of imposing an outright ban, crypto exchange boss says – CNBC

India might tighten crypto rules instead of imposing an outright ban, crypto exchange boss says – CNBC

India is set to propose a new cryptocurrency bill in parliament, and investors are trying to make sense of what this might mean for the future of virtual coins in South Asia’s largest economy.

Lawmakers may ultimately opt to impose tough regulations on the crypto market instead of an outright ban on private coins, according to a top executive at Zebpay, one of India’s largest crypto exchanges.

“My belief is that we will have some kind of coherent regulation, but on the tougher side,” said Avinash Shekhar, co-CEO of Zebpay, told CNBC’s “Squawk Box Asia” on Thursday.

A parliamentary bulletin dated Nov. 23 showed that the government plans to introduce a new bill aimed at regulating digital currencies when Parliament begins its winter session starting Monday.

Through that bill, India is seeking to ban most private cryptocurrencies as well as to establish a framework for creating an official digital currency to be issued by the Reserve Bank of India. However, it will allow “for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the bulletin said.

… the feelers which we are getting from the government is that they’re looking for some kind of regulation, strict regulation, but not a complete ban.

Avinash Shekhar

Zebpay