India’s crypto aficionados call the ban’s bluff. Investors in one of the world’s hottest crypto exchanges dismiss the current anti-crypto movement.
A chartered accountant in Mumbai, Saurabh Shah, is not very concerned about India’s current proposals. To prohibit cryptocurrency. He is 26 years old and lives in the city. Similar propositions have come and gone in the past for him.
Shah made his first Bitcoin investment as a student in 2017. Just a few months before India’s central bank prohibited financial institutions. From conducting cryptocurrency-related transactions.
“I bought it because there was a lot of talk about it,” Shah told Al Jazeera. Adding that he had no understanding of how cryptocurrencies operated. At the time of his purchase.
The Reserve Bank of India’s ban statement widely publicized in April 2018, and it made me nervous. Yet I was unable to withdraw my money. I’m glad I didn’t since the Supreme Court later overturned the prohibition. “I made incredible returns on my initial investment.”
Despite the fact that the government just introduced a bill to prohibit cryptocurrency. Shah does not believe that an outright ban would ever implemented.
In the event that it does. Shah stated that he had only invested the amount that he could afford to lose.
It is the intention of the government’s ruling Bharatiya Janata Party (BJP). To outlaw all private cryptocurrencies and replace them with a digital currency. That would issued and regulated by the central bank. With “certain exceptions” allowing for private currencies to “promote the underlying technology of cryptocurrency and its uses.” After the bill was rewritten to account for the quick changes in the industry. Finance Minister Nirmala Sitharaman said on Tuesday that she did not know what changes were made to the original draft.
Vidur Chhabra, a Goa-based crypto investor
The genie was out of the bottle, said Vidur Chhabra, a full-time crypto investor in Goa.
This is at least a decade behind the times. It will have to be rescinded if they do, as the South Korean government is considering,” Chhabra added. Alluding to recent indications Seoul may relax its ban on virtual currency fundraising.
“I hope. In a world where currencies constantly devalued, crypto is an obvious hedge.”
The market seems to agree and the India’s crypto aficionados. After the bill was announce last week. Bitcoin and other currencies plummeted up to 20%, but values quickly stabilized.
“People that understand the crypto world have bought mostly,” CA Aishwary Gupta. A strategist at Polygon Technology, an Ethereum scaling solution, told Al Jazeera. “Those who sold lost money when the market recovered.”
India is thought to have one of the world’s largest crypto marketplaces. With around 15 million crypto investors, according to technology trade group Nasscom.
In a period of low interest rates. The rush to crypto has also resulted in a proliferation of start-ups and exchanges.
Crypto advertising promising huge returns are omnipresent in publications and on TV. Amitabh Bacchan, Salman Khan, Ayushmann Khurrana, and Ranveer Singh have all endorsed currencies. With foreign venture capitalists pumping big amounts into various cryptos and then selling at the peak. Some regular investors have been burned.
Large losses and the use of cryptocurrency. For money laundering and “terrorism” have prompted calls for more regulation. To avoid “wrong hands”, Prime Minister Narendra Modi warned in November. He also warned that new technology could be used to foment warfare and dominance.
Gupta emphasized that regardless of government or industry control. Investors must educate themselves on the market.
To learn before investing, he advised. “They should know the supply and demand dynamics, use cases. And the trustworthiness of crypto project managers.”
Regardless, the business and India’s crypto aficionados is ready for tougher rules.
While the government is unlikely to embrace cryptos as private currency. Some analysts believe they may be accepted as financial assets.
“Cryptocurrencies should be classified as an asset class in India,” said Ashish Singhal. Co-chair of the Blockchain and Crypto Assets Council. Many other countries have comparable regulations. And practically all crypto uses are for investment, not payment. It also requires a robust KYC [Know Your Customer] approach and a proper reporting structure.”
Additionally, the InvescoCoinShares Global Blockchain ETF Fund of Fund was approved by Indian securities regulators in November. Invesco postponed the ETF launch on November 22 owing to the crypto bill. The fund would have been India’s first exposure to global blockchain startups. Meanwhile, India’s first cryptocurrency unicorn, CoinDCX, plans to go public once regulatory license granted.
Crypto investor Chhabra predicted an irreversible growth.
“Whether the government likes it or not, better technology will improve,” he said. Bitcoin is also water to me. In the end, you can’t stop it.