New Delhi, Oct 13: At a time when crypto buzz is picking up in India, the time is ripe not only to create awareness but also build trust among the first-time investors in the country who are eagerly waiting to hear from the government on the next steps to follow on cryptocurrencies, Darshan Bathija, Co-founder and CEO of Vauld platform said on Tuesday.
Vauld, which is more like a crypto bank for financial products than a crypto exchange, treats cryptocurrency as a core asset class, aiming to infuse core principles of banking into it.
Founded in 2018, the Singapore-registered startup has so far raised $27 million and aims to reach one million users. It currently has over 150,000 users. Currently, most of its customers are from the US, followed by Europe, Singapore, and India.
“At Vauld, we intend to treat your cryptocurrencies as a separate asset class and offer services to ensure technologies based on blockchain are usable as of today. This would negate the need for government acceptance and nationwide adoption for cryptocurrencies to disrupt the banking sector,” Darshan told IANS.
The users are able to earn interest or borrow money as and when they like, without having the need to liquidate their crypto holdings. They can easily exchange their cryptocurrencies for other tokens and Fiat currencies.
According to Darshan, the whole debate in India around legislation and regulation on crypto is timely, as the stakes are very high.
“We do not know yet how the government is going to define cryptocurrencies in its upcoming Bill. Whether it will be an asset, a commodity, or a currency. Once this is settled, the crypto industry in India can plan the next steps accordingly,” he noted.
The government’s draft cryptocurrency Bill is likely to come up in the winter session of Parliament with a definition for digital coins, regulation, and taxation around it.
It will bring more clarity on whether cryptocurrencies will be treated as commodities, services, or similar to equities.
Currently, over 15 million Indians have invested in cryptocurrencies and the investments increased from $923 million in April 2020 to nearly $6.6 billion by May 2021, a growth of about 400 percent, in the country.
India now ranks second on the ‘Global Crypto Adoption Index’, in a list of 20 countries with the highest cryptocurrency adoption rate, according to cryptoanalysis platform Chainalysis.
“Crypto is seeing a huge adoption in India. We see a lot of first-time investors joining the bandwagon. Since crypto can deliver big returns, there are risks and regulation will play a key role in infusing more trust in investors. Regulation is the way to go,” Darshan said.