Why India Can’t Afford To Sit Out The Crypto Race?

“The right crypto regulation will push India ahead in this innovative technology while wrong regulation such as a ban on Crypto will set our country back by a decade.”

Nischal Shetty, WazirX

 At the time of writing, the worldwide crypto market cap stood at $1.77 trillion, a 5.86% improve over the day earlier than, with Bitcoin, Ethereum, and Binance Coin main the pack. The market cap surpassed the $2 trillion mark a number of months again, driving Ethereum & Bitcoin rallies– fuelled by Elon Musk’s tweets & NFT craze. In India, RBI has been backing and filling on the query of cryptocurrency regulation. Earlier, the Supreme Court lifted the ban on trading in cryptocurrency within the nation.

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“The Indian crypto market has flourished since the onset of the pandemic, with a clear shift being witnessed in terms of investment patterns and more Indians in the 25-40yrs age group have begun trading in cryptocurrencies. We have also recorded an increase in new user sign-ups and enhanced trading volumes,” stated Sumit Gupta, Founder & CEO, CoinDCX.

Recently, Congress MP Shashi Tharoor pushed for a clear and efficient regulation of cryptocurrency in an article. He made a case for why India can’t afford to overlook the crypto boat.

“We’ve seen an increase in investors learning about crypto assets and invest in them. At ZebPay, we have seen over a five times increase (year-on-year) in the number of users from last year. This is in spite of the lack of clear regulation around crypto,” stated Avinash Shekhar, Co-CEO, ZebPay.

“Today, the crypto community consists of over 10 Million HODLers, 300+ startups generating tens of thousands of jobs and hundreds of millions of dollars in revenue and taxes,” stated Nischal Shetty, CEO & Founder, WazirX.

India’s place

Blockchain-based applied sciences are altering digital transactions the world over, with DeFI gathering steam within the final decade. However, many governments have raised concerns over the crypto’s potential to rupture conventional monetary techniques, tax evasion loopholes, and its decentralised nature.

“We respect the concern the banks may have around Anti Money Laundering policies, and discussions around the same will make the industry stronger, and investors and investments safer”

Sumit Gupta, CoinDCX

Blockchain know-how isn’t just about crypto and NFTs, however extends to funds, healthcare, cybersecurity and many others. Around 50 percent of the Indian states are utilising blockchain applied sciences, with Tamil Nadu being the primary. Niti Aayog has already come out with a coverage paper, ‘Blockchain: The India Strategy — Towards Enabling Ease of Business, Ease of Living and Ease of Governance’. Blockchain tech generally is a game-changer within the longer run.

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“Blockchain technology along with Cryptography and proof of work has the potential to revolutionise finance, healthcare, agriculture, and many other industries,” stated Avinash. “World over, there are lots of innovations happening around crypto. India has the potential to take a leading role in this innovation and build the next trillion-dollar companies. However, the regulatory uncertainty and lack of banking support are holding back the individuals and institutional investors.”

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With a lot at stake, India can’t afford to lose out on the massive crypto alternative.“Since 2018, when the Reserve Bank of India (RBI) prohibited banks from dealing in crypto-assets, we, along with other industry bodies, have been engaging in industry dialogues with policymakers and investors to raise awareness and address their concerns”, stated Sumit. “Moreover, with increased awareness and interest from the investors, we see a possibility of the government considering forming a panel to regulate cryptocurrencies as digital assets rather than tokens.” 

According to a news report, India’s main cryptocurrency exchanges, together with WazirX, CoinDCX and CoinSwap Kuber, have collaborated with the Internet and Mobile Association of India (IAMAI) to arrange an advisory board to implement a code of conduct for the crypto business. In the previous few months, many banks and cost gateways stopped dealing in cryptocurrencies within the gentle of unclear rules. 

The Centre has plans to introduce the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which is claimed to have provisions to ban the usage of cryptocurrencies. So far, the federal government has been giving combined indicators on the crypto regulation. That wants to vary.

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kumar Gandharv

kumar Gandharv

Kumar Gandharv, PGD in English Journalism (IIMC, Delhi), is setting out on a journey as a tech Journalist at AIM. A eager observer of National and IR-related information. He likes to hit the fitness center. Contact: [email protected]


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