India is a big country, and it has always been ahead in terms of the adoption of new technology. As of now, reports suggest that Indians have invested over $80 billion in crypto. This makes it clear that the government wouldn’t just throw so many investors under the bus by banning crypto. We should also note that the fact that every time a crypto bill is talked about, we hear about India’s crypto ban rumors from all sites.
The dump and recovery
After the news that crypto will be banned in India, the new investors panicked and dumped their coins. And this slumped the prices of crypto in the INR market on Indian exchanges. But like always, long-term investors took advantage of the situation and bought more coins and tokens at prices cheaper than the market. In fact, the dump was followed by a good price increase, and USDT has almost recovered at Rs 77 (the normal price on Indian exchanges is between Rs 80- Rs 82). On the other hand, Ethereum has pumped above $4,400, and BTC touched $59k.
Understanding the bill
To understand why India’s crypto ban reports are just rumors, we should understand its bill. It states that the bill “seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its use.” This is what most news media is promoting, and the investors are worried about. But the term “Private cryptocurrencies” here could mean something totally different.
We all know that crypto is based on blockchain, and every single transaction is available on the public ledger. This means through some regulation and having separate IDs for every wallet on exchanges, one can easily track all crypto transactions. Now comes coins that do not have a public ledger and are completely private. These include Monero, ZCash, and others. And this could be something that the government is trying to explain with the word private cryptocurrencies. It could also mean all cryptocurrencies that are not issued by the government.
Don’t worry about it!
NPCI that introduced UPI payments in India clearly stated that they do not plan to ban crypto. And seeing the current adoption at present, it is not practical that the government will ban it. It is clear that India isn’t making crypto legal tender or allowing it for payments. So, the best argument here is that the winter bill will term cryptocurrencies as assets that can be traded & taxed like stocks and other investments. If it is still banned in India, investors will get a period where they could liquidate their money and take it out.
Note: This is my understanding of the market and news right now, and it is just for reference. Whatever you plan to do with your crypto investments is solely your choice.
What are your thoughts on India’s crypto ban rumors? And do you think will the winter crypto bill bring with it? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.