An Industry body called IndiaTech has proposed to the government regarding the regulation of cryptocurrencies in India and how it will facilitate having a strong future in the country. The proposal includes encouraging users to use cryptocurrency as an asset and not just as a trading value. It can help boost India’s economy even more. The proposal sent to the government suggests making it an asset like a property or gold that is taxable and holds monetary value considering market rates without many fluctuations. Cryptocurrency is a great way to bring in FDI and generate employment at the same time. This will lead to growing investments and, in turn, will put India on a global map of legal and make it a profitable trading hub.
As with all other financial instruments, there is a risk for fluctuation of prices that can easily be addressed with policies and regulations. However, it does not prove to be a barrier to the growth in innovation. The new-age technological activities are going on, which help cryptocurrencies grow even more in value. India should embrace crypto trading and not put various hurdles in the smooth processing of these crypto values. Recently, there have been many talks that Banks are shutting down payment gateways whenever cryptocurrencies are involved.
The various types of cryptocurrencies, Bitcoins, Ethereum, and even Dogecoins, are completely untraceable, making it a preferred choice for money launderers, Terrorist groups, and hackers as well. Cryptocurrencies have been used extensively in money laundering and terror funding to various terrorist groups. As it is completely unpredictable and untraceable for trading value, it is used to deal in illegal trades. These have proper backing pieces of evidence that cryptocurrencies were used in social media campaigns of terrorist groups. The legal structure to support this type of training is not present right now, making it a disadvantage to trading cryptocurrency. These are some issues addressed in the proposal sent to the government to regulate and make these cryptocurrency exchanges and trades hassle-free, legally backed up for a better opportunity at trading and in increased FDIs as a result. It still needs to be seen what the government body comes up with within some time. No matter how profitable and well earning these cryptocurrencies are, they are also unreliable and unregulated, leading to uncertainty. Once these factors are taken care of, Cryptocurrency will become a great return on investment and a valuable asset to an investor.