The Indian central bank is considering banning cryptocurrencies due to its volatility that could impact financial stability of the country. It was reported that there will be no immediate action from RBI on this matter but it would take time before any decision is made by policymakers or regulators because they want more information about how it impacts other countries’ economic policies and whether these cryptos are being used for illegal activities such as drug trafficking or money laundering.
The proposed private cryptocurrency ban in India has sparked panic among crypto holders, and Singhal has advised them to wait for the government statement.
According to the Founder and CEO of CoinSwitch Kuber, Ashish Singhal, the industry discussions with the government have indicated that the financial stability and interests of crypto investors in India will be protected. There has been active engagement between the cryptocurrency industry and the government on drafting a regulation for digital assets in India. In a time when Indian crypto holders are panicking over the proposed ban on private cryptocurrencies, Singhal’s remarks have led to a drop of almost 15-20 per cent in cryptocurrency prices on local exchanges.
In addition, Singhal is the co-chairperson of a newly formed crypto industry organization, Blockchain and Crypto Assets Council (BACC). He advised investors to wait until the government clarifies the proposed legislation. As part of a statement, Singhal urged the Indian crypto community to avoid relying on secondary sources of information, or speculating needlessly.
Keeping investor protection at the forefront, the industry communicates actively with all stakeholders. Over the last few weeks, we have observed a broad agreement on ensuring customers are protected, that the financial system’s stability is strengthened, and that India is able to take advantage of the new crypto technology revolution,” said Singhal.
The crypto industry hopes that the government will involve stakeholders in the process of drafting the bill. “We will follow the government’s directions,” Kuber said. “As of now, I advise all crypto asset investors in the country to remain calm and do their own research before jumping to conclusions,” said Singhal.
As a result of the proposed ban on digital assets being disclosed late last night, the prices of various cryptocurencies, including popular ones like Bitcoin, Ethereum, and Dogecoin, fell at least 15-20 percent on various homegrown exchanges. However, these crypto tokens rallied on other exchanges.
Bitcoin exchange Kuber recently became a unicorn after raising $260 million in a Series C funding round led by Andreessen Horowitz (a16z), Coinbase Ventures, as well as existing investors Paradigm Capital, Ribbit Capital, Sequoia Capital India, and Tiger Global. CoinDCX raised $90 million in a Series C round earlier in August, valuing the exchange at $1.1. billion.
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