Updated January 11th, 2024 at 11:53 IST
A blanket ban on crypto is not practically possible in India: Cashaa
In an exclusive interview to Republic Business, Kumar Gaurav shared his outlook on India's crypto regulatory landscape.
Crypto regulations in India: At a time when Bitcoin’s highly anticipated spot ETF approval is awaited in the United States, the need to have clear cryptocurrency regulations within the country is again being echoed. On the same lines, Kumar Gaurav, Founder and CEO of Cashaa, a crypto staking and lending platform, in an exclusive conversation with Republic Business shared that crypto regulations in the country are not very far as a blanket ban is not practically possible in India.
Gaurav said, “There is a mismatch in the government’s approach towards regulating cryptocurrencies and the demands of the local industry. The government is sending mixed signals. On one hand, the government supports regulations, introduces taxes on crypto transactions, and Ministers share optimism towards building new rules for Web 3.0, while on the other hand, it is often associated with cyber crimes and other increasing financial frauds. Due to this, setting any clear expectations is difficult for us. However, the recent push from the government to build a framework around cryptocurrencies in the New Delhi G-20 Summit gives us hope that holistic crypto regulations are not too far.”
Kumar Gaurav also shared that Cashaa will be starting interest-rate-free loans by the end of January 2024.
On cryptocurrency frauds and restrictive regulations
Gaurav explained that equating cryptocurrencies with decentralised fraud is equal to blaming money for the existence of black money. Gaurav said, “Government should focus more on proactive consumer protection instead of barring a young country from using an evolving technology. India has the right IT workforce, constantly increasing literacy rates, and cheap but skilled labour. These elements are crucial for the growth of any technology and with the right regulation, India can become the centre of blockchain innovation.”
On a blanket ban on crypto
A blanket ban on crypto is not practically possible in India due to its decentralised nature, global reach, and technological complexity. Apart from that India still does not have the required infrastructure to execute a comprehensive and three-dimensional ban on a technology which is inherently decentralised. Additionally, outright prohibition may drive the market underground, making regulation more challenging.
Moreover, countries around the world have accepted the potential for innovation and economic growth in blockchain technology which necessitates regulations instead of an outright ban.”
On Cashaa’s security practices
Cashaa is into over-collateralised lending for short and mid-term needs of crypto platforms including Polygon, Binance, Nexo, KuCoin, Paxful, and others. We also have a presence in the Indian crypto market a clientele encompassing leading crypto exchanges including CoinDCX, Bitbns, UnoCoin, and others.
We follow all the good practices while securing the assets of our customers. All funds of our customers are stored in cold storage facilities located in the Czech Republic where cryptocurrencies are 100 per cent legal and regulated.
However, Cashaa’s retail Indian customer base is still limited to around 5 per cent of the total customers, Gaurav shared.
Published January 10th, 2024 at 18:49 IST