CoinSwitch Kuber pauses crypto ads after WazirX, Bitbns

Cryptocurrency unicorn CoinSwitch Kuber has decided to pause all advertisements about cryptocurrencies until further clarity on their regulation.

A company spokesperson on Wednesday confirmed to BusinessToday.in that it has paused the advertisements until there is further clarity on the issue.

Earlier, other crypto exchanges in India WazirX and Bitbns also hit pause on their ads until further clarity amid government's proposal of a regulatory clampdown of the cryptocurrency sector, reports said.

Meanwhile, the government is going to introduce a Bill on cryptocurrencies, along with 25 other Bills during the Winter Session of the Parliament beginning November 29.

Also Read: Cryptocurrency investors' interests likely to be protected by govt, says CoinSwitch Kuber’s CEO, Ashish Singhal

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 "seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology and its uses".The bill aims to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India, the statement further said. 

Following the news, CoinSwitch Kuber’s Founder and CEO Ashish Singhal said earlier today that the industry discussions with the government over past several weeks indicate that the financial stability and interests of the crypto investors in India will be protected, according to a BT report.

Singhal’s remarks come at a time when the proposed ban on private cryptocurrencies in India has sparked panic amongst the crypto holders, leading to an almost 15-20 per cent drop in cryptocurrency prices on local exchanges.

Also Read: Panic selling led to fall in crypto price only in India: CoinDCX CEO Sumit Gupta

Both the government and the Reserve Bank of India (RBI) have raised concerns about cryptocurrencies in recent months.

There are an estimated 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of around Rs 40,000 crore, according to industry estimates. There is no official data available on cyrptocurrency holdings and the user base.

Earlier, Prime Minister Narendra Modi chaired a meeting to consider the regulatory prospects for cryptocurrencies with the RBI brass and the Ministries of Home Affairs and Finance, where a strong consensus was reached to stop “attempts to mislead the youth through over-promising & non-transparent advertising”.

Noting that unregulated crypto markets cannot be allowed to become avenues for money laundering and terror financing, the meeting concluded that a close watch and pro-active steps are necessary for the sector, senior Government officials had said.