Talk of a cryptocurrency ban in India, is something that many industry experts believe to be counterproductive and is something that simply needs regulating. The unprecedented decision from the government isn’t yet to be passed through as legislation, but the rumblings of such a move would halt one of the world’s fastest growing financial economies.
The industry has grown beyond anything many would have imagined. With access to trading platforms, crypto cards, and an endless list of cryptocurrency wallets. The government’s view on the situation has caused a ripple in the community and has annoyed many who believed India would offer the opportunity for the crypto space to evolve.
The move is hopeful that government issued virtual currencies will be able to work, blocking out private providers such as Bitcoin, Ethereum and the like.
What could this mean cryptocurrencies in India?
Many experts believe that the proposed bill is unlikely to be pushed through, while a less strict version may be implemented. Given the growing number of cryptocurrency users, as well as the fact many businesses are now investing in major coins, will be something leaders will question when the proposal of a ban is tabled.
Moreover, if no other major country is banning these coins, why is India?
The very purpose of blockchain currencies, is to offer users a decentralised currency that is not owned by any government or private entity. Overwhelmingly, this is what appeals to users and has been the foundation that the community is built upon.
Another point of contention, especially from the public, is what would happen to existing Bitcoin holders and what would happen to their existing holdings. The first proposal of this bill, which was delivered back in 2019, states that any wealth held in cryptocurrencies must be disposed of within 90 days.
Fintech is a booming market, with India taking a keen interest in this sector in recent years, it makes little sense to cut off one of the leaders in this industry. India isn’t the only nation to voice concerns over the regulatory measures in place for cryptocurrencies. But, other nations have taken measures to ensure they have regulations that meet their standards.
Regulating new technology like blockchain is no easy task. However, nations such as the UK, France, and the US have all managed to table legislation that acts to protect business and the public from fraudulent activity within the crypt sphere. Comprehensive regulation of the major currencies will allow users to continue using digital assets in an honest manner and will weed out those which seek to game the system.
Ultimately, the government has a duty to citizens to ensure that the transition, in the eventuality of a ban on cryptocurrency, as the law comes into place is smooth and crypto users don’t lose out financially.
But, can the global cryptocurrency community persuade the Indian government to reconsider the ban? This is something that will only come to light over time. For now, India-based crypto users must wait and hope that this bold move is something that turns into regulation, rather than this draconic bill that is currently being proposed.