Recently, a highly reputed Indian news website created a stir in India’s cryptocurrency world with its articles titled ‘With a law, India plans lasting ban on crypto.’ The article didn’t mention any names from India’s finance ministry backing their claim but cited getting the information from a ‘senior government official.’ It said that a memo had been passed on to ban the crypto trade in India for further consultation at the ministerial level.
As per the previous ban, trading or holding cryptocurrency can lead to a hefty fine and up to 10 years in prison. However, one should be foresighted enough to take the claim made in the article with a pinch of salt. There is no doubt discussion is going on in the government about the increasing crypto trade in India. One should take it as a positive sign rather than a negative one. It is because Nischal Shetty, the founder and CEO of WazirX, a local crypto exchange that was acquired by the crypto giant Binance last year, the regulations are due and needed. Still, a blanket ban is not a solution.
The Indian crypto market is still at its nascent stage compared to its global counterparts, and hence, there are a lot of assumptions making rounds. Nischal Shetty said that he has been in touch with the ministers himself and had long discussions regarding the future of cryptocurrencies in India. In his discussions, he found that the government is positive about the cryptocurrencies but are yet to understand how to integrate it into the current financial system without disturbing the entire equilibrium. Such procedures take time, and the ministry of finance has been collaborating with other state and government departments to refine the financial infrastructure that is well-balanced, secure, and ready for the future.
The rumor about the Crypto ban is clearly overblown because of the lack of clarity in the Indian crypto market. A spokesperson for another India-based crypto exchange named CoinSwitch said that the article in question that has triggered the discussion on another crypto ban doesn’t seem to offer anything substantial evidence to come to any conclusion at this moment. Sumit Gupta, one of the founders and CEO of another crypto exchange, CoindDCX, is of the opinion that the recent development would only lead to better understanding and adoption of the cryptocurrencies in the market. It is primarily due to effort put in by the government and the respective bodies to form clear regulations.
With most of the crypto experts and entrepreneurs in India of the opinion that India is yet to see its heyday with respect to cryptocurrencies and trade, there is no doubt about the fact that this sector is here to stay and bound for unprecedented growth in the future. The Supreme Court and financial regulators were very welcoming, communicative, and positive about the concept and integration of cryptocurrencies in the Indian financial sphere. However, it is for the crypto exchange and related companies to ensure that the on-boarding process for the consumers is made secure and easy.
Recently, CoindDCX launched an online platform named DCX Learn, and there is another company named CryptoKanoon that is focused on providing the consumers with the knowledge, toolsets, and resources that would make them feel at ease when dealing in cryptocurrencies. With that said, it cannot be denied that the full-fledged adoption of cryptocurrencies is a work in progress, and rightly so. Once the consumers are fully aware of the cryptocurrencies and its dynamics and the government has made clear regulations, it would be mutually beneficial for all the parties involved – crypto exchange, consumers, and the government. So, the real concern is not the rumors of cryptocurrencies’ ban, but the adoption of the same in the mainstream financial market.