Is cryptocurrency industry of India lagging behind?

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 off.

Throughout the past year, the Supreme Court had announced several dates to hear the case that involved the overturning of the RBI's decision and legalizing cryptocurrency trading in the country. The efforts of a few government officials and the government-established cryptocurrency task force initiated waves of optimism among the cryptocurrency entrepreneurs and investors in India.

According to an official at the cryptocurrency committee that is comprised of the RBI, SEBI, and the Ministry of Finance, there exists a consensus among the officials that cryptocurrency should not be dismissed as an illegal payment method. He further stated that strong riders are important to legalize this tender. He summed up his statement mentioning that deliberations are on. However, this statement was made five months ago and there seems to be no progress in this tangent.

As per an Indian crypto enthusiast, it has become too late for India already. Even if cryptocurrency becomes legal, the sector will not revive immediately. The firms that were compelled to shut down their operations due to unfavorable conditions have lost millions of dollars. Running a cryptocurrency exchange in a hostile environment is an expensive affair. Not every crypto exchange could survive the test of time. Therefore, it is quite unlikely that these firms will come back in the near future.

It has to be seen if the other cryptocurrency exchanges are still willing to take the risk of continuing their operations in India.