Crebaco Global Blockchain Expert: Bitcoin and Crypto Asset Ban Will Cost India $13 Billion
The Indian government seems set to follow through with a proposed ban on cryptocurrencies after a select committee drafted a bill to that effect in the country. The bill was published in July, and along with a complete ban of all crypto-related activity in India, the proposal suggests that crypto activity be criminalized with prison sentences and fines being given to offenders.
Through the “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019” which was in the works for close to two years, the crypto industry in India has found itself in a fix. Many players in the industry have come out to express their concern over the bill and the complete ban it proposes.
The bill also came out a day before the Supreme Court was supposed to hear a matter concerning cryptocurrency. The matter involves a ban that has already been imposed by the Reserve Bank of India (RBI) which stops banks and other financial institutions from giving their services to crypto businesses.
The battle between Indian authorities and the crypto community in the country rages on with the government seems keen on doing away with digital assets.
Experts say the Country will Lose Billions
Cryptocurrency trading and crypto-related businesses are significantly big in India. According to Sidharth Sogani, CEO of Crebaco Global Inc., the country will lose a market worth close to $13 billion if the government follows through with the crypto ban. Crebaco is a blockchain-based analytical firm and Sogani says that a market assessment done by his firm shows these numbers.
Crebaco took a look at how much the crypto industry would be able to generate if the Indian government ruled crypto-related activity legal.
The data considered by Crebaco also included trading volumes experienced by exchanges in India and international exchanges which have Indian traders engaging in business on them. 7.9% of trades executed on Binance in 2018 were from Indian IPs and this shows just how big the Indian crypto community is.
The ban by the RBI already forced a number of crypto businesses outside of India and these companies were also considered in the data analyzed by Sogani’s firm. Several crypto companies with Indian founders and which were initially based in India are now plying their trade in other crypto-friendly countries such as Singapore and these companies are generating billions in revenue.
There are a number of industries and jobs that will be affected if the Indian government goes through with the crypto ban. Besides the loss of billions in potential revenue, there are blockchain professionals, digital marketers coders, community managers and a host of other people who will be rendered jobless by the ban.
Crypto Ban will make 000's of:
— Crypto Kanoon (@cryptokanoon) July 27, 2019
Looking at the potential impact of a blanket ban of cryptocurrency, the Indian government would be best served by putting proper regulations in place instead of doing away with the industry completely.
The crypto industry is growing at a promising pace worldwide, and creating a fostering environment for it seems like the logical step especially given how big the industry already is in the country.