Uncertainties On Crypto Regulation In India Must Be Resolved: CoinSwitch Kuber CEO

"Users don't know what will happen with their holdings," CoinSwitch Kuber CEO Ashish Singhal said at the World Economic Forum.

Cryptocurrencies are clubbed under Virtual Digital Assets (VDA) in India. ( Image Source :Getty )

New Delhi: Cryptocurrency is a mystical subject for many investors in India, with uncertainties around its regulation still remaining a prime concern. At the World Economic Forum in Davos, CoinSwitch Kuber CEO Ashish Singhal told Reuters on Sunday that India must establish rules on crypto to resolve regulatory uncertainty, protect investors, and boost the country’s crypto sector. While the overall crypto market is trying to recover from an unprecedented crash earlier this month, Singhal chose to remain bullish about the crypto industry’s ability to “innovate and create value.”

Singhal said, “Users don't know what will happen with their holdings — is government going to ban, not ban, how is it going to be regulated?” He added that regulations will help bring peace and more certainty.

The CoinSwitch Kuber CEO went on to add that the country should be working towards developing a set of laws, which would include rules for identity verification and crypto transfers. Singhal went on to say that India should ideally put in place a mechanism that would help crypto exchanges track transactions and should the need arise, report to the authority.

Cryptocurrencies are clubbed under Virtual Digital Assets (VDA) in India. Under the new tax regime that went live on April 1, cryptocurrency gains attract taxation of 30 percent in the country.

ALSO ON ABP LIVE: Crypto Crash: CoinSwitch Kuber CEO Ashish Singhal Explains Why He Still Remains Bullish

Following the recent crypto crash, Singhal took to Twitter to offer his take on why the market is seeing a major dip. “The current market behaviour is a combination of several developments: High inflation, US Fed interest rate hike, broader capital outflow from asset classes, Ukraine war, dark clouds over algorithmic stablecoins… the downward pressure is immense,” Singhal tweeted.

“The fall is not limited to crypto,” Singhal said. “Bitcoin has moved nearly lockstep with Nasdaq tech stock. The correlation is at an all-time high. Correlation between asset classes is not ideal. Yet, this tells us the fall is not signalling a fundamental weakness in any asset but simply the broader economic sentiment and the nature of capital flow. We're also likely coming off of a multi-year bull run across asset classes.”

He added that UST’s recent dip “is a significant test of algorithmic stablecoin’s ability. Terra’s de-pegging and its future will be closely watched.”

CoinSwitch Kuber is one of the most popular crypto exchanges in India, offering transaction services for over 100 crypto coins, including the likes of Bitcoin, Ethereum, and Ripple.