This year the Indian Cryptocurrency market saw a lot of ups and downs due to non-availability of a proper framework and regulation by the Government of India. The value of Bitcoin went down at an alarming rate giving the investors a run for their money right after the Union Minister of Finance Arun Jaitley presented this year’s budget and there he talked about the future of cryptocurrencies in India.
But now the government is focussed on carving out a clear set of rules and regulations for trading cryptocurrencies in India once the final report is submitted by the current committee handling this matter.
Arun Jaitley’s statement on cryptocurrencies was widely misinterpreted by the media and thus gave goosebumps to all the cryptocurrency investors of India. Jaitley mentioned in his statement that cryptocurrencies can’t be used as a legal tender for making day to day payments which was interpreted as the cryptocurrencies are banned in India.
The debate about the legality of virtual currencies in India is not new, since 2013 the Reserve Bank of India (RBI) has been issuing notices to the general public regarding the trading of virtual currencies like Bitcoin.
These notices warn the investors about all the possible scenarios regarding the “Legality, Investor Protection and Market risks” involved in the highly volatile market of virtual currencies.
Is making a framework or regulating cryptocurrencies an easy task for the Government?
Here the answer is “NO”. It is not that easy to regulate the cryptocurrencies with a single night of planning as this entire network works on decentralized Blockchain Technology which is a kind of automated ledger where all the transactions happening between the users are stored securely within their system.
Not only in India, even the Chinese government is trying to bring in regulations regarding the trade of these cryptocurrencies in China specifically for Bitcoins as almost 90% of Bitcoins circulating across the globe are mined in China. Also in South Korea, the government has cracked down on several cryptocurrency exchanges operating in their country to keep a watch on the illegal activities like money laundering and other financial crimes and has allowed the registered banks to trade these cryptocurrencies instead of exchanges.
For us in India, we’ll have to wait and watch our Government’s next move about the future of Cryptocurrency and Blockchain in India.