Since 2013, cryptocurrency has experienced its ups and downs in India, the second-largest online market globally.
The Reserve Bank of India (RBI) in 2018 prohibited banks from dealing with cryptocurrency exchanges due to concerns over “consumer protection, market integrity and money laundering, among others”.
This declaration occurred following months of increasing criticism from both RBI and the Indian Government, which compared them to “Ponzi schemes”. Subsequently, RBI instructed banks to cut all binds with any entity that traded in virtual monetary.
The Supreme Court judgment (Internet and Mobile Association of India Vs RBI) of March 2020, permitted dealing in cryptocurrencies, subduing a prior boycott forced by the Reserve Bank of India (RBI) on exchanging virtual monetary forms, for example, Bitcoin.
Although Indians showed massive interest in the business, the authorities indicated the embeddings of a ban again. In March 2021, reports appeared showing that the nation wanted to condemn cooperations with bitcoin and other altcoins.
However, it’s finally good news for crypto investors in India. Recently, Finance minister Nirmala Sitharaman stated that
From our side, we are very clear that we are not shutting all options. We will allow certain windows for people to do experiments on blockchain, bitcoins or cryptocurrency
Recent report from ET also states that the Government may form a new panel of experts to study the feasibility of regulating cryptocurrency in India instead of banning them.
Subhash Chandra Garg is the former finance secretary of India who banned the crypto in 2019, stating that
I am convinced that private crypto-currencies would have a concise future … If today’s valuation is anywhere close to $200 billion, the crypto-currency magic must have made some billionaires, obviously at the cost of a lot of people who have purchased these essentially worthless codes.
However, an unnamed official said that “There is a view within the Government that the recommendations made by the Subhash Garg are dated, and a fresh look is needed at the use of cryptos rather than a total ban.”
The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 were scheduled to be addressed in parliament in March. Still, it was delayed due to some unknown reasons, yet it is estimated that the bill would be considered in the upcoming monsoon.
Scope of Crypto in India
Cryptocurrency is becoming increasingly famous among Indian millennials. Todayq Education has seen a massive growth of 64% new users in India enrolling into cryptocurrency beginners course in Q1 2021. Also there has been a heavy impulse on crypto exchanges and sustained retail demand in India in recent months despite the ever-present regulatory concerns.