A well-known Indian attorney Jaideep Reddy has come up with a clear stand on cryptocurrency stating that the current stance of the government is only going to make it worse. He addressed a panel session (Way Forward for India Cryptocurrency Exchanges) at the Indian Blockchain Congress held at Hyderabad on August 4, 2018.
The cryptocurrency trade in India has come to halt completely in the recent months. After the ban imposed by the Reserve Bank of India a few months back, all the financial bodies have refrained from crypto trade. Therefore, the fate of crypto traders remains uncertain and the money invested is actually moving nowhere in the market which can be considered as a loss.
According to Bitcoin Exchange Guide, he mentioned that, from the policy point of view of this step the entire cryptocurrency market goes underground. He further explains that when the transactions are banned it means that the buying and selling are done in cash. This indirectly moves cash towards money laundering which will challenge consumer protection rights and market integrity.
He also predicted that these restrictions might lead to a high possibility of malfeasance, theft and reduced record keeping. All these might go hidden and opaque from the payment system as it is in cash and there is a ban on the crypto transaction.
Other Speakers Support The Idea of Cryptocurrency
One of the speakers also noted that the exchanges have a defined regulatory policy for crypto trade. When a user exceeds a defined set of transaction value, they have to submit an additional set of verification documents before completing it. This certainly, defines the category of high-risk customer and there are fewer chances of anything to go wrong. Other guests of the panel also supported this stand and spoke in the favor of cryptocurrency regulations. They supported the idea of decentralized exchanges which will be the future of India.
There seems to be a misunderstanding about cryptocurrency and its operations. Perhaps it is considered as a competitor of INR in the market.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]