Cryptocurrency in India was not opposed from the starting; it gradually came on the opposite side. The Indian market has huge potential which is evident with the popularity of Bitcoin. Once a front-runner in the race of crypto implementation, India has now taken a back seat by imposing a ban on virtual asset transaction.
With no set of regulations and organized crypto-based system, India became one of the most favorable countries for the digital asset. The trading exchanges and transactions accounted for almost 10% of the global trade. But the Reserve Bank imposed ban abruptly with no detailed research of the domain. The RBI could not present a valid argument in the last hearing of the court which has given hopes to the investor who filed the petition against the ban.
According to Raconteur, it all began in December last year when Indian Government started issuing warnings. It is further mentioned that finance ministry mentioned digital currency as Ponzi like schemes and recommended caution when investing in cryptocurrencies. Investors are at their own risk and are advised to avoid it completely. In addition to this, this can possibly bring threat to national security with activities like smuggling, terror-funding, money laundering and drug trafficking.
How Government In India Reacts To Cryptocurrency?
Co-founder of IDAP Awanish Rajan stated that the bureaucratic system in India is unable in understanding the benefits of technological advancements. He also mentioned that there is little or no understanding of how it works. Therefore agencies are unable to see what’s happening in the crypto ecosystem.
It is believed that the government will relax the ban and will slowly rope in cryptocurrency in India along with blockchain advances. If there is a complete understanding of blockchain and its benefits beyond crypto domain, there is likely to be wider acceptance by the government. In a update it is revealed that government agencies are planning to impose tax on cryptocurrency.
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