India is one of the few countries that have yet to release laws on crypto regulation. This has made the life of CEOs of crypto exchanges miserable as they find it difficult to work with banks. Recently, Paytm Payments bank announced that it will not work with crypto exchanges anymore. And then we also have HDFC that is sending out letters and emails warning users about cryptocurrencies. The letters say that if they transact in crypto using the bank then their account will be closed. All this combined makes it really important for the Indian government to regulate crypto assets. And now they have set up a panel for that.
It is very important to regulate crypto in India
India hasn’t been very open to innovation in this new sector. The foggy future of cryptocurrencies in India is the reason why banks are not willing to work with exchanges. They fear money moving out from their accounts and it’s understandable. But if the new panel that we are hearing about starts to regulate crypto then even banks have to comply by working with exchanges. It will also add crypto to the tax system of India and make it easier to file crypto gains under short or long-term capital gains.
National Payments Corporation of India (NPCI) has said that they are not planning to ban crypto. So, the fear of investors is mostly due to the uncanny atmosphere created by banks. But it is still very probable that the government will act rationally taking into account thousands of crores invested in crypto, millions of investors, and hundreds of startups that are dependent on it.
Blockchain Expert Sharat Chandra also said that the crypto community wants to get regulated because of the uncertain future without any laws. Investor protection guidelines that regulate stock markets can also be implemented in Indian crypto exchanges says Sharat. But I don’t think volatility is something that can be fixed in crypto. It is the sole reason why they are able to give such high returns in a short period of time.
Do you think that the new panel that the Indian government is setting up will be favorable for the crypto industry? And will there be a safe and secure future for crypto in India? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.