Why India should not delay Cryptocurrency Regulations

The Indian cryptocurrency market has seen a record jump in the number of newer traders registering into the trade each day. The cryptocurrency market is flourishing and is being welcomed in many places like Russia, The United States of America, and many others. It is said to improve the economy of these countries and help in the wider availability of payment options apart from the government-approved monetary values. India is among the few countries putting a hold on the cryptocurrency trade by directing many public and private sector banks to stop any further payment gateway transactions for any trade-related activities. China has also shared its concerns regarding the cryptocurrency trade and has even called it a threat to financial institutions.

Until there is an official take on the cryptocurrency trade collectively by the Banking institutions and regulatory authorities, trading will be another form of gambling. Major Indian Banking institutions like The Reserve Bank of India and State Bank of India have not yet decided on how to move forward with these new-age digital currencies. This has led to havoc in the trading community, as there is a heavy risk of investing in the trades, which are most likely to be banned from the country on the grounds of unregulated operations and decentralized finances. 

There is a large trader community in India that is still awaiting the government and Reserve Bank of India’s joint statement on the cryptocurrency trade. Indians have invested close to 15,000 crores worth in cryptocurrency trade, with over 1.5 crore people in the trade. Close to 350 startups are currently operating the blockchain and crypto values within the country amid the major threat to the whole trade that relies on the government’s decisions to adapt or to put a ban on cryptocurrency trades altogether.  There is a huge risk factor involved in the trading of cryptocurrencies, as the fluctuations in token prices do not rely on crude oil or gold prices within the country but a multitude of factors contributing to the rise and fall. Recently, with Vitalik Buterin donating billions of Shiba Inu tokens, the currency value fell significantly as almost half the market supply was donated for a cause at once. In another turn of events, after Elon Musk decided against accepting cryptocurrency as a means of payment for Tesla cars, the cryptocurrency prices took a major hit. The last major unregulated investments of the chit fund market ended up being a nightmare to people as the majority of them incurred huge losses. Once the set of regulations are laid out on the cryptocurrency market, the chances of these blunders are reduced, and this will help in developing a completely fresh take on the trading ecosystem.