Market experts and traders say that if the cryptocurrency market is regulated shortly while tweaking and embracing the investor protection act which was made for Stock exchanges, it would mean that the volatile nature of cryptocurrency trade would benefit from the decision and strengthen the trade market in India.
Even though, the cryptocurrency market is always fluctuating and facing issues with implementing and integrating these digital currencies in the currently running banking and financial institutions. Since the last few weeks, banks have started declining the cryptocurrency trade practices collectively, leading to havoc in the trading industry, as the investors are unable to cash out or trade their cryptocurrencies and are stuck with it through the fall in prices of the cryptocurrency tokens.
The banks have cited the lack of clear communication by the authorities as the reason for these steps, with every private sector bank joining the list. The banking and financial institutions are blocking payment gateways via the trading applications completely. With all major banks against the cryptocurrency trade, traders and investors were facing significant losses in their holdings due to the recent drop in prices of cryptocurrency token values.
Indian traders have been looking for a true statement by the authorities providing specifics of the trade as the problems with gateway blocking have led to a major uncertainty of the future of trade within the country. Even with Indian cryptocurrencies like Polygon in the news recently being in the top 20 cryptocurrencies in market capitalization, there is a huge market of traders in a dilemma of ever being able to continue trading.
The cryptocurrency market is suffering from the current situations in the country, but the industry is happy about the reports of the government set up a panel to make decisions on the future of cryptocurrencies. Even though the trade market is at a standstill in India, there are still many onlookers and investors waiting for the authorities to clarify their take on cryptocurrency as a form of digital currency. Therefore, the reports on the upcoming panel to resolve cryptocurrency regulatory issues seem like a promising step forward and have given hope to many traders out there. There is no denying that the cryptocurrency market has its share of shortcomings, and to eliminate them, this panel of supervisors will need to address a lot of trade aspects to ensure compliance and investor protection within the country. However, it is still to be seen when this panel will come into play and what all changes they bring about in the functioning of cryptocurrency trade practices.