The cryptocurrency market continues to be a problem that divides India. While the government and the country's central banks continue to issue warnings about the cryptocurrency market (cryptocurrency regulation), the number of investors in the Indian market continues to show an increase. While bitcoin is not recognized as a legal tender in this country, many retailers have begun to accept cryptocurrency as payment. Despite the best efforts of the regulatory body, the Indians seem to have succeeded in seizing the market.
Cryptocurrency regulation is valued
Given some efforts by the government, a foreign ministry official announced that the rules against cryptocurrency were a waste of time. Rather than worrying about how to set up cryptocurrency markets, Shaktikanta Daspercaya that bitcoin and other cryptocurrencies are not allowed at all.
Shaktikanta Das is a former Secretary of Economic Affairs, and he leads the first panel set up to create modalities within the framework of cryptocurrency regulations. Speaking on this issue, Das stated that trying to set the cryptocurrency market is more of a tough task.
He reiterates that it is impossible to monitor every single transaction and, therefore, illegal activity will continue to grow even under a more restrictive regulatory environment. The current economic secretary is one of the 15 members of the finance committee that examines the health of the government's current finances.
One of the key elements mentioned by Shaktikanta Das that is not good for cryptocurrency is the lack of a real asset base. In an interview with Quartz, he said that the fiat currency is guaranteed by the central bank, but cryptocurrency is not. He calls the digital currency a parallel currency system that is not recognized by law and states that cryptocurrency will become illegal in the country.
While the Prime Minister of India, Narendra Modi has expressed support for the blockchain, the government of the country is actually not a fan of cryptocurrency.
In early 2013, the Reserve Bank of India (RBI) issued a warning against cryptocurrency investment. The main reason is that cryptocurrency could potentially be a security threat associated with the market. Despite this series of warnings, however, the cryptocurrency market in India continues to grow.
Apart from the RBI, commercial banks are also experiencing difficulties in all cryptocurrency activities. Accounts of a number of cryptocurrency exchange platforms have been frozen by banks in India.