Around Rs 3 Lakh Crore Cryptocurrency Market In India Wants Regulation, Not Ban

Finance Ministry Nirmala Sitharaman's statement that the government taking "calibrated position" on cryptocurrency has brought cheers to the cryptocurrency industry.

(Representative Image/ Getty)

Mumbai: The government's decision to table a bill in the Parliament to ban cryptocurrencies during the Budget session left the future of the estimated Rs 3 lakh crore cryptocurrency market with about 80 lakh participants in the dark. However, Finance Minister Nirmala Sitharaman's comments last week that the government will take a "calibrated position" on cryptocurrency bring cheers to the industry, still at a nascent stage compared globally.

"We want to make sure that there is a window available for all kinds of experiments which will have to take place in the crypto world," the Finance Minister said during a TV interview last week. "We are not closing our minds."

The Indian cryptocurrency market, with an average turnover of Rs 1000 crore per day, witnessed a record turnover of Rs 40,000 crore in February, according to Zebpay's COO Avinash Shekhar. "We want the industry to be well regulated. The government should think of regulations instead of a ban, which will lead to illicit transactions," Shekhar told ABP News in an exclusive interaction.

"Finance Minister Sitharaman's comments aren't just encouraging for existing crypto companies like ZebPay. It signals that the door may finally be opening for large-scale innovation and job creation in crypto," said Vikram Rangala, CMO, ZebPay.  

Global bank JP Morgan recently posted new blockchain jobs in their Bangalore office.

"If a foreign company can create blockchain jobs in Bangalore, Made-in-Bangalore and Made-in-India companies can do the same, times a hundred," said Rangala.

Reacting to FM comments on creating a window for experiments in the crypto world, Zebpay has decided to open a new Research and Development (R&D) department to experiment the potential of blockchain technology for the greater good.

FM views were further endorsed by Union minister Anurag Thakur on Saturday when he said that the government is open to evaluating and exploring new technologies, including cryptocurrencies, to improve governance.

CoinDCX, India's largest cryptocurrency exchange's Founder & CEO, Sumit Gupta, said, "The FM's stance on 'considering a calibrated approach' is an encouraging sign. We are a 100 plus staff company with some of the best talents emerging out of some of the premier institutes of India like IIT. We have the bandwidth, the data and resources to provide any assistance to the FM's endeavour in this sector."

According to Gupta, FM's statement signifies the government's resolve to digitize India and makes it Atamnirbhar.  

"We are a home grown entity our products are made in India, catering to the appetite of Indian masses. We care for them and the law of the land. Hence, we diligently follow KYC norms and adhere to regulatory practices. We have always reiterated the need for regulation, taxation and transparency for our sector. As Indian fintech firm, we are also building global level products. We believe crypto as an asset has huge potential and if properly administered can help India earn sizeable revenue," said Gupta.

When asked about ban versus regulation, Sathvik Vishwanath, Co-Founder, and CEO, Unocoin, told ABP News, "It is not fully safe to involve in the crypto industry yet in terms of regulation, but it seems we are moving in the direction of how developed countries have handled the regulations. While it is impossible to stop crypto transactions through the outright ban, what is more, important is to make any transactions within the ambit of the law. The crypto industry, including the exchanges, are looking forward to positive regulations like how developed countries have handled it."

According to Viswanath, if India launches its own cryptocurrency, it is unlikely it will be left to the buyer and seller to fix up a value for it, and instead, it will be the government or the RBI who would fix its value in INR. So crypto exchanges may not play a significant role here.