Is the crypto regulation scenario of India getting better?


The Reserve Bank of India, India’s central bank had passed a circular last April that imposed a banking ban on crypto businesses. This announcement had hit the crypto businesses based out of India the hard way. Consequently, some crypto exchanges had to shut down their operations in the country and move their base elsewhere. On the other hand, the remaining crypto exchanges have either opted for layoffs to manage their finances or tried to figure out creative ways to combat the problem of banking ban such as launching peer-to-peer exchange-escrowed services.

 The crypto community of India had filed a plea to the Supreme Court to lift the banking ban imposed by the RBI. However, the hearing date has been postponing ever since. Reiterated deferral has built panic among the crypto and blockchain enthusiasts of India. Last time, when the case was scheduled to be heard, the judge heard it for a few minutes or seconds (if the sources are to be believed). The court was adjourned due to one of the government official’s requests.

Although the Government of India who was tasked with drafting the crypto regulations for the country had stated earlier that they were on their final stages of deliberation yet the brief hearing of the case suggests that they were not ready with the draft. A prominent cryptocurrency influencer of India believes that the case should be heard at the earliest for the vested interest of the Indian crypto entrepreneurs and enthusiasts.

Several crypto entrepreneurs took to different platforms to build the buzz around cryptocurrency regulations. They adopted every means so that the voices of Indian youth are heard by the concerned authority. These campaigns have fetched an enormous response from the Indian crypto community. It almost took the shape of a crypto revolution in India. Despite the recurrent delays in the Supreme Court hearing, the crypto community of the nation has all eyes glued to the next hearing whenever it happens. While some are still hoping to witness positive crypto regulations in the country, others apparently find their hopes dwindling.

In a nutshell, awareness or education is the key to crypto adoption. If the regulation scenario gets better in the country, it will facilitate an exponential growth of the cryptocurrency sector. And if the opposite happens, it will be a red flag for the country’s crypto businesses.

Comments

Post a Comment

Popular posts from this blog

Is cryptocurrency industry of India lagging behind?

Image
Cryptocurrency industry of India had been flourishing until the unexpected decision from the Reserve Bank of India (RBI) emerged. The RBI had directed the banking institutions to terminate transactions with the cryptocurrecy exchanges. This decision came as a shock to the cryptocurrency fraternity of India. The progressive days almost came to a halt for some cryptocurrency exchanges. They had to shut their operations in India. One of the instances that can be cited is Zebpay. It closed down its operations in the nation on September 28, 2018 and moved its base to Malta. In less than 6 months, another prominent cryptocurrency exchange of India, Coindelta closed down its services. In a recent statement, Coindelta founder Shubham Yadav has mentioned that the exchange is not contented with the efforts of reversing the harsh decision of the RBI. He added that it demanded more work which did not happen in the due course of time. Hence, the operations of the exchange had to be called
Read more

Why go trustless?

Image
The idea of distributed ledger technology (DLT) is appealing because it is as close to ‘trustless’ as we can get. Imagine a world where you have true autonomy or freedom and outcomes are not decided by centralized intermediaries. For with people or institutions, there is always the possibility of various cognitive biases creeping in. In such instances, decisions are often influenced by individual value systems, vested interests and personal preferences. In other words, there is a good chance that a centralized third party’s decision is not for the greater good and is determined by the whims and fancies of a select few.  Once DLT works as envisaged and becomes truly autonomous then a neutral framework or mechanism could lead to more efficient end results. Outcomes would simply be due to action and consequence within a set framework. A form of a trustless network that is gaining widespread adoption is the blockchain, and myriad cryptocurrency entrepreneurs would delve into great
Read more

The Regulatory Scenario in the Cryptocurrency Space

Image
The debate has been going on for long about cryptocurrency being legalized by countries. Cryptocurrency evangelists have been of the opinion that cryptocurrency can solve numerous problems in the traditional financial industry. According to them, cryptocurrency can lead to an efficient payment system, especially for cross border transfers. Cryptocurrency can enable quick transfers saving the time, eliminate middlemen lowering the costs, and help maintain a trusted database of transactions on the blockchain network. On the other hand, several financial regulators of different countries are of the opinion that cryptocurrency can lead to financial instability as the digital coins are volatile in nature. Moreover, due to the decentralized nature of the transactions, it will be difficult to keep a check on all the financial activities to prevent any terrorism funding activity. Cryptocurrency, not involving a centralized governing authority and regulatory body, make transactions
Read more