Indias crypto aficionados call the ban’s bluff. Despite the latest drive to outlaw digital currencies, investors. In one of the world’s most active cryptocurrency exchanges are dismissive of the move. 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 was 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 be implemented.
In the event that it does, Shah stated that he had only invested the amount. That he could afford to lose.
Ban on private cryptocurrency and introduction of digital currency
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 be 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. She did not elaborate on the adjustments.
Vidur Chhabra, a full-time cryptocurrency investor in Goa. Expressed his skepticism about any prohibition. Claiming that the genie was already out of the bottle.
“At least a decade has passed since the government and central bankers caught up.” The South Korean government is considering by Indias Crypto Aficionados loosening its restrictions on raising money. Through virtual currencies, so even if they do ban it. They will have to repeal it,” Chhabra added. Referring to recent indications that Seoul may relax its restrictions on raising money through virtual currencies.
“I have a lot of hope. In a world where currencies are continuously being devalued. Investing in cryptocurrency is a logical risk mitigation strategy.”
India thought to be one of the world’s largest cryptocurrency markets. With the technology industry association Nasscom predicting. That the country has approximately 15 million crypto investors and Indias Crypto Aficionados.
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 demand and supply dynamics, use cases. And the trustworthiness of crypto project managers.”
Regardless, the business is ready for tougher rules.
While the government is unlikely to embrace cryptos as private currency. Some analysts believe they may accepted as financial assets.
Bitcoin should categorized as an asset class in India, according to Blockchain. And Crypto Assets Council co-chair Ashish Singhal. Many other countries regulate it similarly. Thus practically all uses of crypto are for investment, not payment. It also requires a robust KYC [Know Your Customer] approach and a proper reporting structure.”
Invesco Mutual Fund was approve to launch the InvescoCoinShares Global Blockchain ETF Fund of Funds 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. Your efforts will impede its progress.”
The rush to cryptocurrency has fueled by investors also seeking higher profits. At a time when interest rates are at historic lows. Resulting in a proliferation of start-ups and exchanges.