“The correct crypto legislation would propel India forward in this revolutionary technology, whereas the incorrect legislation, such as a crypto ban, will set our country back a decade.”
Nischal Shetty, Founder of WazirX
The worldwide crypto market cap stood at $1.77 trillion at the time of writing, a 5.86 percent gain over the previous day, with Bitcoin, Ethereum, and Binance Coin leading the field. The market cap topped $2 trillion a few months ago, thanks to Ethereum and Bitcoin rallies fueled by Elon Musk's tweets and the NFT mania. The Reserve Bank of India (RBI) has been supporting and filling in on the issue of cryptocurrency regulation. Previously, the Supreme Court removed the country's ban on bitcoin trading.
“Since the commencement of the pandemic, the Indian crypto market has expanded, with a marked shift in terms of investing patterns, and more Indians in the 25-40yrs age range have begun trading in cryptocurrencies.” We've also seen a rise in new user sign-ups and increased trading volumes,” said Sumit Gupta, CoinDCX's Founder and CEO.
In a recent piece, Congress MP Shashi Tharoor advocated for clear and effective cryptocurrency regulation. He said that India cannot afford to miss out on the cryptocurrency revolution.
“We've noticed a spike in the number of investors learning about and investing in crypto assets. The number of users at ZebPay has increased more than fivefold (year on year) since last year. Despite the lack of clear legislation surrounding cryptocurrency,” stated Avinash Shekhar, Co-CEO of ZebPay.
“Today, the crypto community comprises of over 10 million HODLers, 300+ firms that generate tens of thousands of jobs, and hundreds of millions of dollars in income and taxes,” stated Nischal Shetty, CEO and Founder of WazirX.
India's situation
Blockchain-based technologies are revolutionizing digital transactions all over the world, with DeFI gaining traction in recent decades. Many countries, however, have expressed concern about the cryptocurrency's ability to disrupt existing banking systems, tax evasion loopholes, and decentralized nature.
“We understand the banks' concerns about anti-money laundering regulations, and conversations about them will strengthen the industry and make investors and assets safer.”
Sumit Gupta, CoinDCX
Blockchain technology is not limited to crypto and NFTs, but also to payments, healthcare, and cybersecurity. Around half of Indian states use blockchain technology, with Tamil Nadu being the first. The Niti Aayog has previously issued a policy paper titled "Blockchain: The India Strategy — Towards Enabling Ease of Business, Ease of Living, and Ease of Governance." Blockchain technology has the potential to be a game changer in the long run.
“Blockchain technology, in conjunction with cryptography and proof of work, has the potential to revolutionize finance, healthcare, agriculture, and many other industries,” Avinash stated. “There are several crypto-related advancements taking place all around the world. India has the potential to lead this innovation and create the next trillion-dollar enterprises. Individual and institutional investors, however, are being held back by regulatory uncertainty and a lack of financial support.”
With so much on the line, India cannot afford to miss out on this massive cryptocurrency opportunity.
“Since 2018, when the Reserve Bank of India (RBI) restricted banks from dealing in crypto-assets, we have been engaging in industry discussions with policymakers and investors to increase awareness and address their concerns,” Sumit added. “Additionally, with growing investor awareness and interest, we see the government considering convening a panel to regulate cryptocurrencies as digital assets rather than tokens.”
According to a news article, the Internet and Mobile Association of India (IAMAI) has cooperated with India's largest cryptocurrency exchanges, including WazirX, CoinDCX, and CoinSwitch Kuber, to establish an advisory board to adopt a code of conduct for the crypto business. Many banks and payment gateways have stopped dealing in cryptocurrencies in recent months due to ambiguous laws.
The Centre intends to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021, which is expected to include restrictions prohibiting the usage of cryptocurrencies. So far, the government's stance on cryptocurrency regulation has been ambiguous. That must change.
