Cryptocurrency in India still in Gray Zone. What's in Future?
It was not long ago, that cryptocurrency went from gray zone to black zone for Indian citizens. To make it worse, RBI released a circular stating the same. Just like anything else, people who were interested in such investments opposed it. Above this, the notification from RBI was challenged by these interested investors to judge the legality again.
The problem behind this is, there are many Indian firms involved in crypto-mining. If the cryptocurrencies are banned completely with no lift, no matter what. These businesses will lose market and also the huge investments that they made initially. Many exchanges including CoinRecoil, Coindelta, Koinex, Throughbit, & CoinDCX have filed a petition against this law.
“The right to trade is a right available to citizens. Their right to do business and carry on trade is also being violated because of the RBI circular,” says Anirudh Rastogi. Anirudh is a founder of Delhi based TRA Law and back 11 petitioners.
In other words, Rastogi says that the notification from RBI has brutally removed these 11 petitioners & many individuals out of business. This is a straight denial of "Right to choose" act. Furthermore, Rastogi mentioned that the governmental body, RBI, is being biased with this business.
That is, the government cannot be biased for one business and ban other business. End of the day, the cryptocurrency exchange body is business and government cannot deny anyone from doing this.
However, the RBI’s concerns are not pointless. By banning cryptocurrency, the RBI is actually avoiding scams, terrorist activities, money laundering etc. If this is regulated, many people would indulge in sending payments on Whatsapp or any internet platform for that matter. This would not help anyone in any way, except the ones involved in the transaction. Black market & black money that is in control now will boom fearlessly.
Considering the anonymity of cryptocurrencic transactions, it will be really really difficult to trace any fraudulent transaction among the genuine ones. Hence, the RBI is urging the exchanges to come up with some stringent measures. Measures that would keep the transactions in surveillance without disrespecting the nature of blockchain technology.
Understanding this, many exchanges have already implemented self-governing measures that would keep such transactions in check. Strict KYC details should be gathered for all the users who sign up for any exchanging platforms. In April this year, a survey across many traders revealed that most of the traders had a complete record of transactions in cryptocurrency. This happened just because of strict KYC process, the exchanges had in place.
RBI had their own ways to tackle cryptocurrency investors. The bank accounts were closed of all the investors that would eventually block transactions in cryptocurrency. Against this, the exchange business owners showed the biggest concern of not being able to manage expenses.
Banks have been busy sending warning messages upon investing in cryptocurrency led to a sharp drop of visitors (unique & returning) on the exchange website. This is already a huge loss for those business owners. As all this settle, it is advisable to have the altcoins in hardware wallet. If you have it in any of the international exchange platforms, there is a chance of an unauthorized access & even hacking away your funds.
The future of cryptocurrency in India seems still dicy, as the governmental bodies are still studying the impact of this technology. Also, if at all RBI makes it legal, there needs to be a lot of strict rules to govern it well.