Crypto regulatory in India is not entirely clear. There is a lack of arrangements that would allow the mass use and development of crypto in this country.
India’s Supreme Court delivered a controversial ban
The Supreme Court of India repealed the controversial ban on crypto transactions in India. In April 2018, the court banned this kind of transactions for banks. Thanks to numerous public petitions and the activities of IAMAI, a non-profit agency that assists in appealing the judgments, the order was overturned. Immediately after this decision, the largest Indian crypto companies like Uncoin and WazirX returned to play.
Unocoin is going live with bank account deposits and withdrawals by 11.30 AM today (March 5th) #IndiaGotCrypto
— Unocoin (@Unocoin) March 5, 2020
It would seem that this is the last difficulty that cryptocurrencies have to deal with before they are put into mass use in India.
The law is still not clear
More than two months have passed since the March process and great hopes for the future of the crypto in India, but the crypto exchanges still face many problems. The law is still unregulated. For example, a tax on goods and services should be imposed on transactions. If India’s crypto exchanges are required to comply with GST on every single transaction, experts convince that most platforms dealing with crypto payments will not survive long.
Concerns about cryptocurrencies
Although cryptocurrencies are becoming more and more popular in the world, there is still a lot of banks, which see them as just threats. In their opinion, this market lacks established standards of customer protection. The problem of uncertain law on crypto payments does not apply only to India. It is also a problem faced by many countries in the United States and Europe.
Indian banks are waiting for the official RBI’s opinion on the crypto transactions
Despite the Supreme Court order, Indian banks are still waiting for official approval from the Reserve Bank of India. Many of them still refuse to support cryptocurrencies transactions.
Indian people ready for crypto
Due to the COVID-19 virus, many currencies are losing value. Governments around the world are printing money and more and more people are looking for alternatives to invest their money. There are also more and more voices like this in India. Indians are worried about the future value of their home currency. Their interest can be seen in the number of people active on Indian crypto exchanges. There are as many as 5 million active users.
The crypto exchanges still active in India
Despite lack of clarity in the regulation of crypto trading, some stock exchanges are cooperating with banks that allow for this. There is a lot of people interested in crypto payments. In time, we will see whether the government will impose new restrictions on this type of transactions, or whether, encouraged by potential tax profits, it will enable the development of crypto exchanges in this country. Especially after the pandemic, additional income should convince the government.