Some news suggests the Indian government can impose limitations on self-custodial crypto wallets, allowing Indian exchanges only. Meanwhile, a top crypto exchange CEO has shared views on what market players can anticipate from the restriction. Keep in mind that the Authorities listed a crypto bill to hearing in the current parliament session.
Possible Restrictions from Crypto Regulation in India
The Indian parliament awaits to hear a crypto bill during the current session. Nirmala Sitharam, the nation’s finance minister, confirmed that the crypto bills require a rework from the original version. Remember, the first version aimed to ban digital currencies, including Ether and BTC.
WazirX’s chief executive officer shared his views on speculations via Twitter yesterday. CEO Nischal Shetty highlighted that unconfirmed reports stated that the India crypto bill might ban ‘self-custodial wallets.’ He elaborated that the new law might accept Indian exchanges only. However, the official revealed that prohibiting software can be challenging, and Self-custodial wallets are software. Moreover, Shetty added that users could not access many decentralized services without them. That means the crypto space is against the move.
The CEO proceeded to say that regulation should focus on regulating Indian services. Meanwhile, the crypto services should adhere to the nation’s rules and regulations. Keep in mind that most countries monitoring the market use a similar tactic. He revealed that all exchange could then register their businesses in India.
Shetty commented on whether he anticipates cryptocurrency regulations to apply to exchanges operating in India only. He said that authorities would expect centralized cryptocurrency exchanges to follow Indian law, an easy thing for any firm operating in the count, the CEO added.
WazirX CEO also stated that he supports competition in the marketplace. The market will drive out services or products that do not match the standards. However, Shetty advocates for fair competition, hoping for the best cryptocurrency environment in India.
India had an ongoing crypto bill. This week, the nation’s finance minister answered several questions about the government’s proposed crypto legislation. After that, reports emerged that a note from the cabinet shows regulators are not planning a crypto ban but regulating the space.