In this day and age, there’s hardly anyone who hasn’t yet heard of Bitcoin and similar cryptocurrencies. These digital currencies have created an entirely digital economy, allowing people to make secure, anonymous payments online.
Whether it is used as an investment tool or as a safe and anonymous way of purchasing products online or even to deposit on betting sites, cryptocurrencies have become quite indisposable for the world at large.
Bitcoin has obviously been one of the most popular cryptocurrencies in the world – having risen from its original value of $1 all the way to around $60,000 per Bitcoin. This steep ascent signifies the growing popularity of cryptocurrencies.
However, the world of crypto is no short of its controversies and the resulting ups and downs. Following the crackdown on cryptocurrencies in China, Bitcoin saw a sharp decline in its value. Similarly, other currencies such as Ethereum and Dogecoin also went through a decline of 22% and 24% respectively.
Also read: Top 5 Cryptocurrency Wallets in India
But what does this mean for the future of cryptocurrencies in India?
India still remains a country where the use of cryptocurrencies is unregulated. While buying into Bitcoin or similar currencies is easily possible online, the sector lacks any regulation from the end of the Indian government.
However, that hasn’t stopped Indians from owning about $1 billion worth of cryptocurrencies. That has obviously raised questions amongst the investors about whether cryptocurrencies will be regulated in India any time soon.
Is Cryptocurrency Legal in India?
While there has been talk of the Indian government planning to put a blanket ban on crypto in India, it is not yet illegal to purchase cryptocurrencies in India.
The RBI, in a circular from 2018, had prohibited all the financial institutions regulated by it, to stop dealing in cryptocurrency transactions. Following that, a government committee in 2019 suggested a blanket ban on cryptocurrencies, with plans to implement a jail time of up to 10 years for dealing in cryptocurrency.
However, in a landmark judgment by the Supreme Court in March of 2020, this ban on cryptocurrencies was overturned. This meant that Indians could freely invest in Bitcoin and similar cryptocurrencies.
However, there has been a resurgence of talk about a potential ban on cryptocurrencies in India, which would be truly counterproductive. But there might still be some hope of regulation of cryptocurrencies in India’s future.
Will Cryptocurrencies Be Regulated in India?
While buying and selling cryptocurrencies has become much easier in India, thanks to the many trading apps available in the country, there is still an immediate need for government regulation. Regulation would mean that cryptocurrencies would become an official part of the Indian economy, and would be more widely exchanged and used in day-to-day activities.
And latest reports from the Ministry of Finance now suggest that regulation might be a real possibility for cryptocurrencies in India.
This is because the RBI has spoken of its plan to create its own digital currency as well. The Indian government does not want to miss out on the opportunity that blockchain technology offers and would like to dabble in the world of cryptocurrencies themselves. This may mean that regulation might be an option in the future of cryptocurrency investors in India.
The creation of an Indian cryptocurrency may also create a much-needed boost for the digital infrastructure of the country, propelling us towards potential financial growth and prosperity!