Questions Arise About India’s Understanding of Implementing Bitcoin Regulations Thoroughly
India is currently moving towards unclear and clueless Bitcoin (BTC) and cryptocurrency regulations. Although there are several ways to regulate digital currencies, India seems not to have a clear path about what they want to achieve.
India’s Crypto Regulatory Path Becomes Confuse
The Reserve Bank of India (RBI), the central bank authority of the country, warned citizens about the risks of trading and holding virtual currencies. The RBI warned users back in December 2013. At that time, Bitcoin and other digital assets were just starting to grow and were far from being what they’ve become today.
Since 2013 until now, things have changed. Countries are starting to analyze how virtual currencies can affect the economy in a broader scale. Nevertheless, just a few countries have decided to completely ban virtual currencies. Jurisdictions such as Malta or Switzerland have been very welcoming with cryptocurrencies and have leveraged their potential to improve people’s life.
India seems to remain on the same path as it was a few years ago when Bitcoin was just starting to grow. There are several individuals in India that are starting to request to the authorities of the country to open themselves to virtual currencies. On Twitter, there are crypto influencers in the country using the hashtag #IndiaWantsCrypto to promote virtual currencies in the nation.
They are tweeting every single day to their minister to get a reply from them and to increase awareness of cryptocurrencies. During the last 127 days, every single day, users have been writing to their authorities regarding digital assets. The main intention behind this campaign is to be heard by lawmakers in the country to be at the forefront of the crypto revolution.
Russia has moved one step closer to positive crypto regulations. The law makers there are calling Crypto the "Economy of the Future"
Crypto is indeed the Economy of the Future and India should embrace this and win 🇮🇳 #IndiaWantsCrypto
— Nischal (WazirX) ⚡️ (@NischalShetty) March 6, 2019
India has been attacking virtual currencies, has raided crypto-related startups, banks are not offering services to companies working in the industry, among other things. The crypto community of the country took the RBI to the Supreme Court of India and challenge the ban.
The country is not following any clear path in terms of virtual currencies. The laws in the country have never defined digital assets and might not do it in the short term. Nevertheless, India is one of the most powerful countries on earth and it must take a clear stance towards virtual currencies.
The RBI could soon realize that the ban on virtual currencies will not stop users from dealing with digital assets. Indeed, users are now handling them behind the state. Executives at the Securities and Exchange Board of India (SEBI), have been traveling to Japan and Switzerland with the intention to learn more about how they have regulated cryptocurrencies during the last years.
Japan has been taking very open policies towards virtual currencies. The country has also imposed strong regulations for companies to operate in the market. Nonetheless, the crypto economy in the Asian island is growing and flourishing. Meanwhile, Switzerland has been very open to virtual currencies. Several companies have located their operations in the European nation and there are cities that have implemented different blockchain solutions to improve their services.
The country could ultimately ban virtual currencies as China did in the past. If the country does not show that it is changing the way in which it deals with virtual currencies, it might end up banning all crypto-related activities in the country.
This decision will only harm the country’s role in the upcoming crypto and blockchain revolution. India has incredible potential and it only depends on the government how the nation will be handling it. Will they implement a ban or they will be supporting local startups to grow and expand in the market?