With crypto bills closing in, experts list worst-case options

Amid the ongoing debate on whether to regulate cryptocurrency in India, fear and uncertainty loom large over India’s crypto ecosystem, as the government has indicated that it is likely to introduce a Cryptocurrency Bill in the winter session.

According to broker discovery and comparison platform BrokerChooser, there are over 100 million cryptocurrency investors in India today, who have collectively invested over $10 billion dollars. The prices of many cryptocurrencies, especially bitcoin, are rising. At present, the price of 1 bitcoin is Rs 44.92 lakh. However, it is important to note that there is currently no law in India to regulate cryptocurrency. But there’s nothing that says it’s illegal to work in it.

If the proposed bill considers cryptocurrency to be illegal tender, it would bar investors from trading in any crypto class.

Prices will be banned

“Existing traders and investors will have to file losses opening the floodgates for huge financial claims and disputes. Professor Padmanabha Ramanujam, Dean, IFIM Law School, said, “All of this will eventually take legal recourse with many court cases already passed due to the huge investment already made, some court decisions on the subject ” Cryptocurrency Expert.

But cryptocurrencies are global and will not be affected by decision making by any particular country. Shivam Thakral, CEO of BuyUcoin, a domestic cryptocurrency exchange, told indianexpress.com, that the global crypto market is “…too big to be banned and regulators are expected to respect people’s choices and allow them to make their own decisions”. Allow investment products to be selected.” India’s crypto investments have crossed the $10 billion mark reflecting the mood of institutional and retail investors.

Any restriction on cryptocurrency trading or holding would be a major blow to the ecosystem of startups that have recently flourished in India.

“A quick search on LinkedIn with the keyword ‘cryptocurrency’ shows a list of over 10,000 jobs in India. Apart from these new vacancies, many thousands of people are currently employed in this field. Banning cryptocurrency would be a regressive step for any government,” said Edul Patel, CEO and co-founder of Mudrex, a global crypto investment platform.

When China’s top regulators banned crypto trading, there was an immediate change in coin prices, wiping out at least $400 billion from the market. This is because China is one of the largest cryptocurrency markets.

However, India’s share in the trading business is much less than that of China. Ramanujam believes that as long as global companies continue to adopt crypto-related products and services, cryptocurrency prices will not take a dent.

Interestingly, crypto exchanges did not see any significant drop in trading activity during the 2017 ban by the Reserve Bank of India (RBI). “Coin prices are not affected by the decision taken by a particular country as crypto assets are decentralized in nature,” Thakral said.

Any restriction by the Government of India will affect the cryptocurrency exchanges and platforms based in India. However, there will be no volatility or loss in the prices of the coins.

investment will be stuck

When the ban is imposed it means that transactions between the bank and your crypto exchanges will stop completely. Users will not be able to convert local currency or liquidate existing investments to purchase any type of cryptocurrency.

But, Ramanujam added that investors will still be able to find buyers where the cryptocurrency is still legal. “… while leverage is still possible, the transaction cost of liquidating crypto coins in that scenario would be very high.”

Thakral explained that investors will be free to withdraw their money in any case by following the policies and procedures of the platform on which they are trading.

“In case of a complete ban, a time period will be given to all investors to withdraw funds. During this period, investors will be able to sell their stake as usual,” Patel said.

Disclaimer: Cryptocurrency is an unregulated space and digital currencies are not backed by any sovereign authority. Investing in cryptocurrency comes with market risks. This article does not claim to provide any kind of financial advice for trading or buying cryptocurrency.


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