Regulations Restrain Crypto and Digital Currencies
Booming cryptocurrency tokens are taking over the world of new-age currencies. Both local players and tech aficionados want a piece of crypto. A few have already started investing while most wait for a green signal from government authorities.
More than a million-dollar of crypto assets being done each week. The COVID-19 Lockdown situation is only pushing these numbers further up. Due to a lack of regulatory framework, the government is losing out huge chunks of monies. Many big players in the crypto world have not been able to arrive in the Indian market and push their liquidity products owing to the regulatory challenges. Services for offering crypto securities token can be opened in India as well to allow international remittances through crypto on platforms like Ripple.
In its present structure, trading in cryptocurrency tokens is ambiguous as it not unlawful butan ill-defined situation without rules from the legislature makes it a grey area. Financial specialists, as well, see dynamic future growth in this space. CoinDCX, a Mumbai- based firm,went through investment rounds from Polychain Capital and Bain Capital Ventures.
Still, investors are daunted by the question: What is the status of digital currency dealings in the nation?
The RBI has not yet permitted banks to trade in crypto securities token offerings. Few payment gateways and small players did initiate trades at a small scale. But large banks have not jumped into the race. In 2019 when the government drafted a bill to ban cryptocurrency assets. Trading or usage of cryptocurrency was culpable with monetary fines or detention of up to 10 years or even both. With the COVID-19 episode keeping the legislature occupied, the industry isn't anticipating any big moves as of now.
India attracted huge attention from around the globe when trading volumes pierced through the ceiling in 2016 and 2017. Crypto aficionados understood the potential of Indian financial might, tech genius and surplus affluence. A few believe cryptocurrency tokens to be a speculative resource same as gold or other commodities. Other doubts on its future existence within a legal framework. A boycott will only result in India missing out on future innovation. Now the government will decide the next big move.
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CBW - External Analyst