Nischal Shetty, CEO and co-founder of India’s largest crypto exchange WazirX, shared about the discovery of alarming “unconfirmed reports” of an impending crypto crackdown in India.
Nischal Shetty, who is also the founder and keynote speaker of the India Wants Crypto movement, shared his expectations and views on the highly anticipated law regarding cryptocurrencies in India.
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According to the latest Twitter thread by Mr. Schetty, there are some “unconfirmed” reports about the most important regulations that could be included in the new crypto-related Indian bill.
“There are unconfirmed reports:
1. ‘Self-custody wallets’ may be banned as part of India’s Crypto Law.
2. Only Indian exchanges are planned to be allowed.
Some people are using this as an opportunity to crash the Indian crypto ecosystem.
Read the series below to learn more.
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There have been unconfirmed reports that:
1. ‘Self custodial wallets’ may not be allowed as part of India’s Crypto Bill
2. Only Indian exchanges can be used
Some people are using this as an opportunity to bash the Indian crypto ecosystem
Read below thread to understand
— Nischal (WazirX) ⚡️ (@NischalShetty) December 3, 2021
First, India may ban the use of “self-custody” cryptocurrency wallets. As a result, transactions with decentralized (on-chain) wallets can be made illegal by Indian regulators.
Besides that, only Indian-registered exchanges will be allowed in the country.
But Mr. Schetty is confident that the use of software (in this case, decentralized crypto wallets) cannot be banned. Also, the restriction of this class of wallet means that Indians are prohibited from interacting with most decentralized finance protocols (DeFi).
However, it also seems highly unlikely that foreign cryptocurrencies services will comply with the rules set by Indian financial regulatory watchdogs. Therefore, the Indian crypto community needs to build its own reliable infrastructure. Schetty thinks positive crypto regulations can accelerate this progress:
“We are making good progress on crypto regulations. The entire crypto industry has been working towards this goal for the past 3 years.”
As previously reported by KoinFinans, Indian politicians and commentators are sending mixed signals about their plans to regulate the crypto industry. On November 23, 2021, India made headlines with its plans to ban all cryptocurrencies except CBDCs pegged to Rupee.
Two days later, India announced that it has no plans to ban all “private cryptocurrencies”. This area will be regulated by the Securities and Exchange Board of India (SEBI).
Two days later, India announced that it has no plans to ban all “private cryptocurrencies” and that this area will be regulated by the Securities and Exchange Board of India (SEBI).