Crypto Exchange Founder of CoinRecoil Writes an Open Letter to the India’s Prime Minister
The CoinRecoil, which is an Indian crypto exchange, had gone ahead to file a writ petition. The petition was filed against the RBI circular that is to ban the crypto companies from accessing any banking services.
To this effect, an open letter was written to the Prime Minister by Kunal Barchha, who is the co-founder of the exchange. The letter detailed the concerns he had with the move and his frustration; this is according to the INC42.
More On The Open Letter
Kunal Barchha goes ahead to outline the expectations that the crypto space had and how the Modi government could convert most of the desires of the crypto space. He stressed that the government had the resource to make all these desires come into reality.
But with the silence surrounding the crypto space within the Indian market has affected the rate of innovation that was taking place. As a result, this has killed the dream of influencing the upcoming entrepreneurs into the vibrant crypto space.
However, the government is also concerned about the scams together with the increased risks of terrorist funding activities. All these are legitimate fears from the government, especially at a time when the increased tension in India and the neighboring countries, this the likes of Pakistan.
But with all this fear, it should not penalize the whole crypto space, and lead to a ban. Instead, there should be regulations that have been put in place to control the crypto market.
The RBI's Concerns Over The Market
The RBI is also concerned for the investor's wellbeing, as investors getting duped has become a common thing within the crypto space. But there is still a valuable point that has been put across by Barchha. The point is that not all exchanges within the Indian market are as transparent.
With the increased concerns surrounding the market, the government has gone ahead to form a committee that will analyze the space. The committee has been made up of experts in revenue collection together with monetary policy; however, there is no representative from the crypto space. Nonetheless, the committee has not taken the necessary steps to engage in discussions with the citizens.
The Exchanges Have A Long Way To Go
At the moment, the Indian trade is slowly lagging behind. With the strict Know Your Customer (KYC) that have been put in place together with no cash deposits mean every rupee that is going into the exchange is being accounted for. Not forgetting the shutdown that was witnessed by the Koinex, which is the largest exchange in India, goes to show how behind the crypto space is going.
The government has no powers to stop investors from trading with the crypto-coin, but they can take the necessary measures to ensure merchants don't accept the use of crypto. As a result, they can ban the overall conversion to the INR.