What could be the possible effects that can occur after the Indian government puts a ban on cryptocurrency?
It is not a long time since India widely opens doors to cryptocurrency , however cryptocurrencies in India might be at risk of being banned again! Lately it was reported that the country’s Ministry of Finance issued a note on internal consultations. Once these consultations are over, the note will reach cabinet and from there the Parliament.
If it’s implemented, then it could affect the usage of cryptocurrencies within the country. The current note has very similar tone to one law draft from July 2019 which said:
“A fine of up to Rs 25 crore ($3.3 million) and imprisonment of up to 10 years for anyone dealing in them.”
A partner at AKM Global Amit Maheshwari said:
“It would make it illegal to hold, sell, issue, transfer, mine, or use cryptocurrencies and, if passed in the current form, would completely decimate the crypto-industry in India.”
As mentioned, back in March 2020 India actually lifted a 2-year ban on cryptos from the Reserve Bank of India. With that action, all crypto businesses felt the good effects on their developments very quickly.
Additionally, most big companies decided to invest in this industry and many companies and projects succeeded within the first months. After that to no one’s surprise, cryptocurrencies took a big skyrocketing moment and the trading and demand really took over.
Many exchange platforms commented on the possible changes. One research made by Coinpaprika and OKEx summed up the results as:
“India’s overall cryptocurrency market has become prosperous again, especially reflected in the exchanges’ trading volume.”
Other platforms such as CoinDCX, WazirX, Kraken, Bitfinex, Bitstamp had big crypto spikes in March, as well.
So, whether the country decides to ban cryptos or not put the ban into action, the following consequences might damage whole businesses, traders, investors, platforms, etc.
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