What’s The Way Forward for The Crypto-Industry in India?
The world is moving towards Cryptocurrency and even India is not far away in that race. Major economies of the world and big shot companies are opening their arms for Cryptocurrencies and that’s a clear sign that we are all realizing its potential sooner or later.
photo credit: André François McKenzie / Unsplash
It was in March this year when the Supreme court gave a landmark judgment in which it lifted the ban on Cryptocurrencies. This has paved the way for India to move towards an economy that is open for every industry and where people can get involved in the Crypto trade and make the best out of its potential. For more information visit bitcoin era.
However, there is still a long way to go as the banks in India are still stuck in those traditional practices. This is the reason the country is yet to become a crypto-friendly nation. In a recent study, it was found out that not all the banks are supporting crypto-based transactions. Though the ban has been lifted, still all the banks are not open to the new crypto ruling.
This only points to one thing the Indian banking system is still not over that traditional system.
Now, all these happenings have made these currencies look for an alternative approach, which means, the currencies are seeking regulation from the government so that the banks would open their doors to their operations. India has a system where everything is regulated and that’s how people judge the legitimacy of any industry. For this very reason, many cryptocurrencies have approached the apex court to issue an official letter to these banks and if their operations and transactions would come under the ambit of the Goods and services taxes. An official and legal recognition and declaration on part of the apex court will open its arms for the free movement of these currencies.
This could be a point of conflict between the Indian Tax authority and India’s crypto exchanges. To avoid this at a later stage, they are trying to resolve this primary issue at the earliest. While the Crypto industry is expected to break all the previous records and grow to unprecedented levels in the coming years it will be interesting to see how India’s official authorities will respond to this situation.
The banks might open their doors for crypto operations if they could cover it under the gambit of their usual formalities. This includes the Know Your Customer measures, data protection measures and fraud alter departments. Even if that happens, the Crypto industry in India will for sure come under the regulatory framework of the government according to the verdict it takes.
While the Global pandemic brought the Indian Economy crashing down, it did the exact opposite to the crypto market. The severe the blow was to the economy, the more they were pulled towards the crypto as it offered another ray of hope in these distressing times.
With people looking for an alternate source of income and a way to make out of this grim situation, Crypto seems to be their choice. For these reasons, people are flocking towards this currency and hence we can presume that the future of Crypto is bright and positive in India.
The state of Cryptocurrency in India is similar to that of the USA and the UK. Like other things, India is following the suit of these two powerful nations in the Crypto race also. these countries are yet to give a green signal to Crypto just like India. The moment these two countries will take a positive move in this direction we can expect the situation to get better in India also.
Though, it’s right on the parts of the government of these countries to put a ban or restriction on the usage of Cryptocurrency. This is because the currency could become a hotspot for money laundering, terror financing, and illicit trading, etc. However, these countries need to see the positive side of the industry too. The way they are focusing on the negative, they should look at the bright side too.
Eventually, it will all come to how we use the currency and how we regulate it. If the regulations are in right place the currency could pave a way for a transformation of the financial industry all in a good way. All we can expect is an official statement from the Reserve Bank of India which will give a green signal to the banks and they will open their way for crypto-related transactions.