According to foreign media reports, a large number of Indian investors are hastening into the cryptocurrency market in an extraordinary route, but from the current point of view, this trend is extremely risky.
As of May this year, the dimensions of the Indian cryptocurrency market was nearly 6.6 billion U.S. dollars( 49,189 million rupees ); compared to April last year, this figure was only about 923 million U.S. dollars. The business has increased by more than 700% year-on-year.
Some industry insiders said that the current growth of the Indian market is still the tip of the iceberg, and there will be more Indian investors pouring in in the future. Data provided by the blockchain data tracking stage Chainalysis are demonstrating that among the 154 countries that have been weighed, India’s cryptocurrency scale ranks 11 th.
Harish BV, CEO of Unocoin, an Indian cryptocurrency exchange with 1.3 million customers, territory :
“India has a population of 1.39 billion, of which young people with a relatively high proportion of the population are more proficient in technology and more adaptable to the way of saving cryptocurrency.”
Despite the current growth trend, some Indian cryptocurrency exchanges have more confidence to entice monies from global investors. But all this requires a prerequisite-the Central Bank of India and the government have not intervened in the encrypted grocery, and have not already questioned any relevant standardized laws and regulations. In a panorama of the past entanglements between the Indian government and the cryptocurrency sell, this hidden fret will become more prominent in the future.
India’s cryptocurrency boom
In April 2018, the Central bank of India decided to restrict banks from engaging in cryptocurrency-related business. The decision was rejected by the Supreme Court in March last year, which also led to an explosive expansion in the demand for cryptocurrencies in India.
The Reserve Bank of India( RBI ), the central bank, questioned the following statement on May 31 , apprising it not to use its 2018 affirmation on restricting banks from providing services to cryptocurrency scaffolds or investors. Since then, the authorities have remained silent. At pose, cryptocurrency exchange of views among investors have involved the latest notice issued by the Reserve Bank of India as a common interpretation. Given the current scale of investment, this height of danger may be more damaging.
The action of the Reserve Bank of India is likely to be a signal to remove the thorough outlaw on cryptocurrencies, although India still has not acquainted standardized laws and regulations for cryptocurrencies. Therefore, the market still needs to remain cautious about any future policy changes.
In addition to the government’s unclear situation on cryptocurrencies, investors also face other gambles related to the lack of market supervision. Harmonizing to Nischal Shetty, CEO of Indian crypto exchange WazirX,
“At present, the biggest regulatory loophole in the crypto market is that some bad participants may recruit the trading system. Although most people can follow the relevant regulatory codes of conduct on the exchange, we cannot prevent the bad behavior of some participants.”
India’s cryptocurrency marketplace has many issues related to payment solutions, taxation, and legal status, but if the government and the Reserve Bank of India can change their previous views and attitudes to the industry, these issues will be solved.
Avinash Shekhar, CEO of ZebPay, an Indian Bitcoin wallet startup based in Singapore, said :
“With the rise of countless assignments and inventions, the world cryptocurrency ecosystem is booming. These related investors, inventors, and companies also have job opportunities for many beings. Regulation around the crypto market will certainly contribute to the health of the Indian market. development of.”
Shekhar too has indicated that clear the rules of cryptocurrencies will mean that cryptocurrencies can become the same resources as sovereign monies and become part of the economic market.
The cold war between the cryptocurrency business and government regulation
At present, the Indian government is considering the introduction of the “Cryptocurrency and Official Digital Currency Supervision Act of 2021 “, which may ban all private cryptocurrencies in India and establish an official digital currency legislative framework. However, for now, the devotion of investors still Did not fade away.
Last week, Indian Finance Minister Nirmala Sitharaman said that the government has prepared a draft plan on cryptocurrency, which provides a window for pilot schemes and ventures by fintech businesses. Sitharaman said in an interview with Indian media :
“We have listened to the opinions of all stakeholders, and locker records are ready. We can only watch the changes and wait for the cabinet to consider and pass this draft before we can initiate the statute. “
Some people are confident that the delay in submitting the draft is due to the fact that the Reserve Bank of India is developing its own central bank digital currency and that the cryptocurrency sell is “still out of state.”
According to Nischal Shetty, CEO of Indian crypto exchange WazirX,
“In fact, cryptocurrency is a new technology, and the unknown nature of this new technology too concludes the Indian government and central bank skeptical about it. All regulatory agencies are related to the financial field, but have nothing to do with the technical domain. And when an engineering that has been deeply entrenched in the field of science and technology suddenly appears in the financial field, for the regulator, it is facing a great challenge to regulate this market.”
