Here's how Coinswitch founder Ashish Singhal will pitch to FM Sitharaman & RBI Guv Das

Cryptocurrency (Representative image)

Cryptocurrency exchange CoinSwitch Kuber’s Founder and CEO Ashish Singhal has one pitch in favour of cryptocurrencies that he would like to make to both Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das as India awaits a clear law on crypto.

Does India wants to take a chance to miss out on what the crypto revolution has to offer?

Responding to a question from Moneycontrol’s Chandra R Srikanth on a panel with Shailesh Lakhani, MD of Sequoia India at TiE Delhi-NCR’s India Internet Day 2021, Singhal said, “Crypto, not only in India but globally is defining what the new internet would look like. India has already missed out on internet 1.0. Do we want to take a chance that we miss out on this new revolution as well?”

“India is a digital first country, we could be setting examples. The next Google and Facebook will come out of India, they will be built on blockchain. We'd rather work together, form regulations suitable for users, innovators and the government, and ty to be part of this new revolution together,” he added.

Touted to be India’s second crypto Unicorn in recent months after CoinDCX, CoinSwitch Kuber recently crossed 10 million users. A unicorn is a privately funded firm with a valuation of $1 billion or above.

Moneycontrol reported on September 16 that Silicon Valley-based venture fund Andreesen Horowitz or a16z is leading a funding round of $100-200 million to back CoinSwitch Kuber, at a valuation of $2 billion. With this funding, CoinSwitch Kuber’s valuation would have jumped four times from its last funding round which valued the company at $500 million.

On the policy front, Indian crypto enthusiasts are currently in a wait-and-watch mode with all eyes on the centre. While the bill is awaited, experts largely hope that the government will treat cryptocurrencies as an asset and tax them as such.

Singhal’s pitch also comes in the backdrop of recent comments by Governor Das reiterating that the central bank has concerns around cryptocurrencies and has conveyed the same to the central government.
Sequoia’s Lakhani mirrors Singhal’s views. According to him, limiting access to cryptocurrencies can have a catastrophic impact on development going forward.

“Limiting innovation from India would be like limiting the internet in India in the late 1990s. Limiting access for Indians to be a part of the crypto tide would probably be catastrophic for the later part of the century,” he explained.

The Indian crypto market is also evolving in terms of the individuals investing in cryptocurrencies, number of startups, as well as funds investing in crypto-related businesses.

“The fundamentals in crypto are quite different from equities. But that does not mean it is a gamble. We are seeing a lot of long-term investors entering the ecosystem now. They want to hold Bitcoin, and at every dip they buy more,” Singhal said.

Venture Funds too are more comfortable with the idea of investing in the cryptocurrency space now, Lakhani added.

“Investors are definitely much more comfortable with crypto today. Regulations were the main concern that most investors used to have, and the second issue was understanding this new structure which was very different from equities. We ourselves struggled to invest in cryptos a few years ago. But now we have come to understand it a lot more, and appreciate the benefits,” he said.

On being asked what advice both would give to Indian crypto investors and potential investors, Singhal said, “I would advise -- learn more about cryptocurrencies. Whether you are a sceptic or are in favour, just try to understand what this industry is about. It is not about investment, but about knowing more.”

Lakhani advises people to keep an open mind towards cryptocurrencies and dabble in the actual game. He said, “This is very early. So, a lot of what we see in crypto don't judge it too harshly and keep a very open mind. Secondly, put a small amount of money and start playing. You will learn the simple things by just getting involved.”