We all have been worried about the cryptocurreny ban in India. There were reports that a crypto bill could be passed and that could criminalize the possession and mining of crypto. But no such bill was passed. But does this mean that the government is turning a blind eye to Bitcoin? No! In fact, the Indian government just took its first step towards regulating cryptocurrency in the country. This is a big relief for investors and anyone who was looking to invest in Bitcoin or Ethereum for the long term.
How will the government go about regulating cryptocurrency?
One of the most important steps towards regulating any form of financial transaction is knowing the details. This is why the government has made it compulsory for every cryptocurreny exchange in the country to share all transaction details with them. These financial details should be incorporated in their balance sheets and will help the government keep a closer eye on every transaction. Other than the transaction details, the government has also asked the exchanges to share P&L statements, and every user’s amount holdings. They will also have to share the deposits or withdrawals made by the user on the exchange.
All the rules will be made active from the next financial year and will be added to the Companies Act 2013. This step also means that the chances of any form of fraudulent transactions and other similar stuff can be reduced. As per the CEO of BuyUcoin, this step is going to bring a lot more transparency to the crypto world. It could also speed up the process of institutional adoption and make crypto investments in the country, not a risk.
The impact of the decision
With the economic growth that India is seeing, it can have a wide impact on the future of cryptocurreny. There are already 7 million investors in the country with over $1 billion in holdings. And the number is only bound to increase. This step will also make it possible for more companies like Paypal and Tesla to enable their crypto options in the country. And once the laws are even more clear, we could see bigger exchanges entering the cryptomarket. It was also expected that the ban of crypto in the country would have a negative impact on the price of Bitcoin and altcoins. So, this move can also resume the bullish momentum that we have been seeing for quite some time now.
What are your thoughts on the new steps taken by the government for regulating cryptocurrency? And do you think it will enable the bullish momentum of Bitcoin? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.