Binance Buyout Brings Hope to Investors in India of Enhanced Regulation
Back in April 2018, India’s central bank instigated a massive crackdown on purchasing and trading cryptocurrency like Bitcoin. Bibhu Kanungo, who is the Deputy Governor for Reserve Bank of India, declared that all the firms regulated by the RBI should “stop having business relationships with entities dealing with virtual currencies forthwith and unwind the existing relationships in three months time.”
Even before implementing the ban, the bank had already issued statements whereby it warned users of perils associated with digital currencies. In 2017, India’s finance ministry announced that cryptocurrency was a significant threat, and it was kind of an investment bubble. If it crashed in any way, whether prolonged or sudden death, it would significantly affect investors.
Things got even worse after the bank failed to assess the issues surrounding cryptocurrency and imposed a ban on all cryptocurrency activities. The bank ought to have formed new regulations to govern the crypto activities and shield consumers from malicious companies and organizations.
The ban led to the creation of a bill commonly referred to as “Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019.” Lawmakers proposed a jail term for not less than ten years to the citizens who engaged in cryptocurrencies.
The bill, however, suggested that India Reserve Bank’s Digital Rupee could be approved as a legal tender by the government. But all other currencies that are otherwise cryptocurrency would be prohibited. The CEO Crebaco, Sidharth Sogani, explained meticulously why the government of India took this stun action saying that there is no way you can regulate something that you are not in direct control of. He described Bitcoin as an open-source network and borderless hence cannot be controlled.