Cryptocurrency ban in India is the latest trending topic in the crypto market following several allegations and anticipations by the experts.
One such prediction has come from the renowned Cryptocurrency Domain Analyst, Vikram Nikkam who is also a CEO and Founder of Instacrypto. He believes that the decision of Reserve Bank of India banning crypto coins wasn’t unpredictable and definitely not surprising.
According to BC Focus, the Bitcoin Analyst stated that the Indian financial institutions will remain against cryptocurrency or in fact any other de-centralized coin as the control over the economy will be affected. He further mentioned that the investors who were enthusiastic until now have stepped back due to the ban. In his opinion, this is a simple case Indian mentality of not going against the law which has severely affected the crypto trade in the recent months.
He asserted that the fall in the Bitcoin prices is solely due to a public hesitation of not investing into it until the ban is lifted. The prices of Bitcoin hit an all-time high in December last year which attracted a large number of Indian investors.
After the demonetization drive in India, citizens prefer cashless transactions over cash. Perhaps, they have finally recognized the benefits and efficiency of online transactions. However, the business of illegal activities will never shift their base from cash acceptance as it goes completely untraceable which serves their purpose of moving the black money in the payment zone.
Nikkam believes that since the government has no tax regulation system and directives for the digital currency, therefore, there is a huge gap within different government agencies on its undertaking. The government has set up a committee for creating an outline draft of the regulation which will be unveiled next month.
Government Should Regulate Cryptocurrency
In the absence of any regulation control and continuation of the ban, investors will begin using cash for buying and selling of cryptocurrency. Hence, there will be no transaction control and monitoring which is catastrophic for both the Indian government and economy.
The best move as of now is lifting of the ban which will at least give a monitoring control on the flow of money in a legal way.