CEO of CoinSwitch called on the Indian authorities to be clear in the regulation of cryptocurrencies

Ashish Singhal, CEO of crypto exchange CoinSwitch, said that the uncertainty in the regulation of cryptocurrencies in India is hindering the development of the industry in the country.

Head of the Indian cryptocurrency exchange CoinSwitch Ashish Singhal during his speech at the World Economic Forum in Davos declaredthat India needs clear regulations for cryptocurrencies to protect investors and develop the sector.

“Users don’t know what will happen to their assets or if the government is going to ban them. We insist on the introduction of rules. With the right regulation, we can achieve clarity on what can and cannot be done,” Singhal said.

CoinSwitch is India’s largest cryptocurrency company headquartered in Bangalore. The number of CoinSwitch users reaches more than 18 million, and its capitalization is $1.9 billion. The company is supported by Andreessen Horowitz, Tiger Global and Coinbase Ventures.

The statement of the head of CoinSwitch fully expresses the anxiety experienced by the Indian crypto business. Previously, the Central Bank of India has repeatedly expressed concern about the growing popularity of cryptocurrencies in the country. His stance at one point even led to support for a ban on digital assets.

The federal government’s move to tax income from cryptocurrencies has been seen by the industry as a sign of the potential adoption of digital assets. But after that, the Indian Goods and Services Tax Board began to consider imposing a 28% tax on all cryptocurrency transactions.

The law was approved on March 31 and came into force on April 1, 2022. Thus, the 18% tax on storage and transactions with cryptocurrencies increased to 30%. Later, the Indian Ministry of Finance announced plans to introduce a one percent tax on all transfers of digital assets over 10,000 rupees ($132) from July 1.