India doesn’t enjoy much of a happy relationship with blockchain. While the Indian government colossally advocates blockchain invention, a big part of Indian states have just begun with government sponsored blockchain ventures. However, the administration is ambivalent towards it drawing several measures to prohibit its development.
In April, 2018 the national bank of the nation, RBI issued limitations stopping the banks from doing any cash transactions with cryptocurrencies. This majorly hit the Indian crypto ecosystem because people never traded their cash with cryptocurrency holdings. Some of the major crypto exchanges of the nation like Zebpay and Koinex have shut down while some such as WazirX have paved their way by making other distributed exchanges.
The ban from RBI isn’t the major hindrance in the expansion of cryptocurrency ecosystem in India. In July,2019 an advisory group formulated by the Indian government suggested complete restriction on cryptocurrencies all over the nation and proposed imposition of fines on all activities related to crypto. It will soon appear in the Indian Parliament for discussion and if it gets passed, it could mean the end of cryptocurrency in the nation.
Usually, the major have been opposed by significant protests from cryptocurrency players of India. The Internet and Mobile Association of India have filed a plea which is being heard in the Supreme Court. They present that the national bank of India is using its power to forbid banking of cryptocurrencies. And guarantee that unless there isn’t a proper law set up for cryptocurrency, the RBI doesn’t have any right to make rules in this regard.
The discussion of the proposed legislation in Parliament has strong grassroots development from India’s cryptocurrency network suggesting a reconsideration of these regulations. They contend that the given decentralized idea of cryptocurrency will make it very tough for the administration to keep them from happening.
And, the transactions will occur in the dim market. It means that deceitful movement will rise and criminal behavior will probably rise. However, positive guidelines rather than boycotting it completely will be a better methodology. It will bring the administration in a better position and also bring cryptocurrency transactions under tax assessment.
Another suggestion is that it will get tough for the Indian government to support blockchain development on the off chance in case it bans cryptocurrency fully. And a full boycott will also discourage the blockchain development in the nation.
Providing open support
It is an educated approach towards cryptocurrency with mass support #IndiaWantsCrypto – a social platform appeal for bringing cryptocurrency guidelines. People have interest for cryptocurrency investment in the nation, especially high earning individuals.
As per a survey of Hurun Research Institute, 9.6% of high revenue mean stated that cryptocurrency will witness a rise in the coming 3years.
But, as of now, the cryptocurrency exchanges are getting highly affected by this vulnerability condition. Some are on the verge of shutting down, while others have changed their transaction methods. CoinDCX offers P2P services now. WazirX has initiated Smart Token Fund Program where cryptocurrency traders can work with developed traders and exchange their funds and earn profits.
Irrespective of Indian legislation and vulnerability, cryptocurrency network still enjoys cautious optimism. Experts suggest that India will not say farewell to cryptocurrency in the coming future.