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Frenzy State of Cryptocurrency in India

Indian cryptocurrency investors and traders apparently have to face a blow from the country’s government on unclear crypto regulations.

Since April 2018, India is hemming and hawing over long-discussed crypto regulation when Reserve Bank of India (RBI) issued the circular and demanded banks not to provide further services to anyone related to cryptocurrency. 

Though, after the Supreme Court’s (SC) overruling on RBI’s blanket ban, the enthusiasm in the crypto community has started to thrive and crypto trade has begun in the country. 

On March 4, after receiving the green signal from the Supreme Court of India against RBI’s blanket ban the cryptocurrency environment in the nation has now started to flourish. So much so that, Bitcoin trading volume calculated on p2p exchanges increased 883% on Paxful comparing the beginning months of 2019 and 2020, according to the data published by Usefultulips.

Interestingly, after lifting of the ban by SCI, the situation over crypto regulations is still under the grey area. Recently, India’s Finance Ministry has proposed a directive to legally ban cryptocurrencies in the country once again. This is certainly, a blow to the Indian crypto investors/traders, local cryptocurrency exchanges, and the international crypto-focused businesses that have almost started to flourish in the subcontinent.  

Reportedly, the latest proposed law to ban digital assets indicates an unexpected turn that every crypto enthusiast has to face. 

The Economic Times while mentioning the latest update quoted the unmade government official:

 “A note has been moved (by the finance ministry) for inter-ministerial consultations,” a senior government official told ET.”

As per the reports, the Union Council of Ministers would first review the new proposal and then forward it to the parliament for the final evaluation, ET mentioned. 

The experts said that after the veto by SCI over RBI’s rule Indians have started taking the interest in crypto investments. However, the new ruling can curb the growth of the booming crypto businesses and can prove a blow to the crypto enthusiasts, especially when the economy of the country is going down and citizens are looking forward to investing in Bitcoin considering it a safe-haven. 

The crypto blanket ban proposal has certainly raised a dilemma amongst the investors and business entities. However, there is much to be disclosed and aware the local public to give them clear directives on the imminent law and further restrictions to follow on, if they deal in cryptocurrencies.