Will Cryptocurrency Survive or Get Banned in India?

While appealing to the Government of India not to ban cryptocurrency, the Internet and Mobile Association of India (IAMAI) has made a good case for regulating digital money. The Association has said that the suggested move will have several adverse effects. It will hit around 10 million Indian crypto customers and ultimately lead to a loss in investments. IAMAI proposed to make it legit instead.

IAMAI has told the government to establish a robust mechanism in order to regulate the ecosystem. To brace the idea, the Association informed that regulation and good governance of cryptocurrency in India will encourage GOI’s vision of Digital India. Needless to say that cryptocurrency has been generating jobs in various fields like compliance, tech, legal, marketing, finance, business development, etc.

Also, India is noticing a remarkable increase in digital assets. Statistics provided by IAMAI show that there are over 10 million crypto holders belonging to the crypto community. These holders own about $1 billion worth of crypto assets, in addition to 300+ startups that generate hundreds of millions of dollars in taxes and revenue along with tens of thousands of jobs. A trading volume of 350-500 million dollars happens every day.

The main purpose behind IAMAI suggesting to define the cryptocurrency regulation framework is only because of the adverse effects of the proposed ban. According to the industry body, the defining process should be done after due consultation with stakeholders such as Indian crypto-asset user groups, IAMAI and the exchanges that facilitate selling and buying.

The suggestion came after the government listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for introducing, considering and passing in the ongoing session of the Indian Parliament.

Reports stipulate that India most likely wishes to introduce its own digital currency, i.e., a Central Bank Digital Currency (CBDC). This is in accordance with several central banks in the world which are already on their way to launch their own digital currencies.

Chairman Emeritus of Payments Council of India (PCI) and Fintech Convergence Council, Mr. Naveen Surya said that government can assure a secure and safe crypto market for investors through KYC-related compliances and CFT/AML.   

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