
When you watch TV in India, you will get many things related to cryptocurrencies and the services provided by exchanges. Suppose that you are watching a cricket match on TV in India, and whenever there is a break, you will see an actor promoting cryptocurrencies like bitcoin. They will want you to invest in these digital coins even if you are not interested. Cryptocurrencies are always surrounding you, no matter where you are.
Well, the even more exciting thing is that these are not regulated by any government officials in the country of India. Still, they are spreading like fire in the country’s geographical boundaries. Therefore, it is exciting to know about the regulations surrounding the cryptocurrency space in the country.
The government of India and cryptocurrencies do not have any good history. There have been times when India has been imposing a severe threat to the cryptocurrency environment in the country. It is all because there is high risk and uncertainty. The government of India believes that cryptocurrencies are a threat to the economy.
Therefore, they need to be curbed down. However, the country’s youth are investing in cryptocurrencies on a large scale, making it very important for the government to address them. Back in 2013, the government was not accessible about digital coins. There was a proposal in Parliament that cryptocurrencies need to be regulated very soon so that financial stability can sustain for the country. However, the issue was later not appropriately addressed and hence curbed down.
The warnings
2013 was the year in which cryptocurrencies were spreading like fire. The most important cryptocurrency which took the global market surprisingly was bitcoin. However, India was also getting another influence of these digital coins with the whole world. To curb the movement of cryptocurrencies and the spread of these digital coins among the youth, the reserve bank of India released a warning.
On December 24, RBI stated the cryptos to be not suitable for the system of democracy. It says that there are a lot of threats that you can face like hacking, compromise of access credentials, loss of passwords, malware attacks, and many more like this. Therefore, if you are investing money in cryptocurrencies, it is not safe there. Further details are available on Crypto Engine.
Also, the government of India has made several warnings regarding the increasing payment using cryptocurrencies in the country. People want to use the options that are not controlled or regulated by the central bank or government of the country. Peer-to-peer transaction methods provided by cryptocurrencies like bitcoin are used at a large scale in India.
It may cause losses, disputes, and fraud among the parties involved in the transaction among anyone who is a part of the transaction. Therefore, the government of India wants the youth to use these payment methods that can be hazardous, and due to the volatile nature, there is no certainty of a contract. If you make a contract using cryptocurrencies, the value may vary, resulting in a dispute.
The Reserve bank of India gave another warning to the government and the people regarding its price fluctuations. There is no real and physically existing commodity that banks the prices of bitcoins. Therefore, the prices will always be unstable and moving. Speculations are very different as no one can regulate the prices of bitcoins. Therefore, using these digital coins in any financial area could be a severe problem for anyone using it. Even though the government has several warnings, people are not backing off from using digital coins.
Banning crypto
While addressing the increasing trend of cryptocurrency usage in the country, the RBI recently suggested that the movement of these coins should be lower. Recently, there was a meeting held between the Indian government and RBI. The topic was regarding cryptocurrencies and their regulation.
The ruling party may bring a bill that will control the movement of cryptocurrencies. However, it may also ban cryptocurrencies within the country, but the underlying technology will benefit it. Therefore, they might ban cryptocurrencies like bitcoin, but the underlying Blockchain technology will still be usable for the general people and business firms.