The cryptocurrency industry in India is now flourishing, and ordinary investors are adding fuel to the fire with their excitement. India is projected to have over 10 million crypto investors, with the number growing by the day. While many Indians enthusiastically support cryptocurrencies, one piece of disinformation is preventing many more from doing so.
Bitcoin is a cutting-edge payment network built on the ground-breaking cryptocurrency technology that has revolutionised the way people send and receive money over the internet. Bitcoin’s value has risen to the point that one bitcoin can now buy a one-bedroom apartment in a major metropolis. Bitcoin and other cryptocurrencies are currently legal void in India, as they are not sanctioned nor regulated by any government body. Digital tokens are not specifically prohibited, according to the RBI, therefore they are legally lawful in the nation. This implies that in India, you may purchase, sell, possess, and keep digital products without breaking any laws. Because of the legal void, there are no laws, regulations, or guidelines for addressing any problems that may emerge when dealing with Bitcoins. According to a source, work on the contentious cryptocurrency regulatory measure is nearly complete, and it might be introduced in Parliament by the end of 2021.
The government’s forthcoming legislative initiatives, as well as the lack of clarity around Bitcoin’s legal status, are further adding to the confusion, with one rumour claiming that India may soon draught a bill prohibiting all cryptocurrencies. When cryptocurrencies first became popular in India in 2017, tech-savvy retail investors jumped on board. However, there were some who took advantage of it and used it to fuel illegal operations. Since cryptocurrencies were still in their infancy at the time, officials had yet to figure out how to regulate them. To combat the surge in illegal activities, the government implemented policies that it deemed to be the most effective at the time. The government, for its part, has disputed that it plans to outright prohibit blockchain and cryptocurrencies in India. India’s Finance Minister Nirmala Sitharaman said: “From our side, we are very clear that we are not shutting all options. We will allow certain windows for people to do experiments on the blockchain, bitcoins, or cryptocurrency.”
The study, on the other hand, appears to be in accord with a government pronouncement from January calling for a prohibition on private virtual currencies like Bitcoin. The government, on the other hand, appears to be interested in developing a foundation for its own digital currency, similar to a previous RBI declaration. However, cryptocurrency transactions like as CoinSwitch Kuber have played an important role in assisting the government and assisting investors by self-regulating and requiring a comprehensive KYC check for all of their investors.
The Finance Ministry intends to devote more work to this and to produce a set of cryptocurrency standards as soon as possible. Those countries that have legalized cryptocurrencies have gone through the same stages. They first found it difficult to adapt cryptocurrencies, but in order to avoid falling behind on technical advancements, they accepted them.