By The Situation of cryptocurrencies in India is really baffling right now. There have been rumours of a draft bill that’ll supposedly ban cryptocurrencies in India. The government hasn’t responded properly yet and many crypto-related businesses are closing their doors in India. So the Coinbeat team decided to get a look on the inside, and who’s a better candidate than the CEO of the biggest Indian exchange himself, Nischal Shetty, CEO of WazirX, the exchange that is keeping cryptocurrencies alive in India.
CB: You have founded/Co-founded multiple companies, what brought you into cryptocurrencies and what led to wazirX?
I’ve been a blockchain believer from several years. However, 2017 was when I started getting deeply interested in Blockchain. I decided to build WazirX after a series of disappointing experiences with using Indian cryptocurrency exchanges. Having built and scaled a global product out of India (Crowdfire), we decided to take up the challenge of building a crypto exchange for India which offers them world-class UX, and transparency.
CB: Indian government has been quite shady about how they are approaching crypto regulations, what do you think are the prime factors that are stopping the government from taking rapid action?
It’s mostly the lack of information. If you read the recent IMC report, you’ll see that it’s not well-researched. Blockchain is a nascent technology, and Indian government needs to involve technologists in understanding it, and take cue from developed nations like Japan and US. Banning is not a solution.
CB: Recently a piece of news surfaced about a draft bill which discusses the banning of cryptocurrencies in India and a 10-year jail term for those using it, what are your thoughts about it?
It is just a recommendation which has to go through several stages before it becomes a law. It is also possible that the government may establish a standing committee to revisit the issues addressed in the report as and when required.
The IMC report is flawed and lacks a fundamental understanding of cryptocurrencies. I’ve even written a detailed post explaining the problems with the recommendation. This recommendation has brought us at a crucial point in the crypto revolution, and the entire industry has come together to fight and prevent it from becoming a law.
CB: What are the problems that cryptocurrency-related businesses are facing in India due to lack of regulations?
The lack of regulatory uncertainty has led to several exchanges shutting down, and it’s unfortunate for the ecosystem. It also restricts new people from entering into crypto, because they are not sure about its legality. With projects moving out of India, it’s also costing us job losses! No new foreign investments have entered India in the Crypto space due to this uncertainty.
CB: The banks have been barred from transacting with any crypto-related business, how are consumers in India working around that ban without breaking any of the existing laws?
Shortly after the RBI ban in 2018, we innovated and launched WazirX P2P, the world’s first auto-matching P2P engine. Today, WazirX P2P is the cheapest, fastest and simplest way to buy/sell crypto using INR in India. We’re seeing several P2P trades happening every minute, and rapid growth in our P2P volume every month.
I think it shows that crypto is far from done in India. I hope our government understands it too and brings in positive regulations soon.
CB: Majority of people in India are still in the dark and don’t know what Cryptocurrencies or the blockchain technology are, what according to you can help promote awareness?
We all need to collectively work together to educate the masses and create more awareness around crypto. There is plenty of myth and misinformation surrounding crypto, and all of us should work towards squashing it. I’ve been running a Twitter campaign called #IndiaWantsCrypto urging our government officials to bring in positive crypto regulations for over 280 days now. I talk about the positive aspects of crypto, and you can join in the revolution too. You can also write on publications, your own blog, or upload YouTube videos on crypto, and bust the misinformation around it. Let’s make our voices heard!
CB: Where do you see Cryptocurrencies and blockchain technology in India in five years?
Slowly, more and more people are becoming aware of crypto, and wanting to pursue a career in Blockchain. Positive regulations will give a big push to crypto adoption in India with more startups building projects on blockchain.
With tech giants like JP Morgan, and Facebook jumping on the crypto bandwagon, within the next few years, crypto will become mainstream, and we’ll see more and more use-cases of crypto come to life.
The future is exciting!
CB: WazirX has come a long way, What plans do you have for the future of this company?
We want to add more features to WazirX. Also, we plan to take WazirX P2P to more international countries and make it the default way to convert fiat to crypto and vice-versa. The Fiat <> Crypto conversion problem is real, and it’s worse for developing and under-developed countries. Having already successfully solved this for Indian users, we’re confident that WazirX P2P will solve it for more countries.
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