September 29, 2021

What happens if India de-legalises cryptocurrency?

Amid news of China imposing blanket ban on cryptocurrency transactions, signs of cautious stance by government, a long-awaited announcement regarding the official cryptocurrency bill to be tabled in the upcoming winter session of the parliament, we take a look at a shuddering scenario in the case of de-legalization of cryptocurrency in India.

It is important to note that India currently has no legislation to regulate cryptocurrency, despite not having outlawed it as well. The government is forming a new committee to mull over the taxation implications of the increasingly soaring cryptocurrency trades in India. Reports suggest that more than 15 million Indians have currently parked their money in this space.

“Various estimates suggest that over the past twelve months, more than 15 million Indians have invested in cryptocurrencies. It is currently growing at a steady pace, with huge participation coming from tier-2 and tier-3 cities of India. Cryptocurrencies are much more than volatile digital currencies. They are an asset class that provides much-needed diversification to the portfolio of any investor. Taking cues from the Chinese approach to impose a blanket ban on cryptocurrencies would surely be a massive blow to the Indian economy,” says Edul Patel, CEO & Co-founder of Mudrex.

There certainly is no doubt that cryptocurrencies and blockchain have the potential to drive the next phase of job creation for India’s highly skilled youth. Future innovations in the cryptocurrency and blockchain space have the potential to be tagged Indian, along with being a solid avenue for job creation and economic growth.

“Adoption of cryptocurrencies will also aid inflow of foreign investments from capital-rich countries who are looking for projects to support in this field. Just like the internet which gave millions of Indians the freedom to express and opened new avenues without disrupting the Government’s oversight, cryptocurrencies can also be embraced by us,” rounds off Vikram Subburaj, Co-Founder and CEO of Giottus Cryptocurrency Exchange.

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