Regulations surrounding India’s cryptocurrency have been questioned for some time. Similar to other countries around the world, their digital currency needs a set of standards to protect the users. Even more so when the market has significant growth including the 1st and 2nd quarter of 2020.
India’s Cryptocurrency Market Boom
Not surprisingly, the digital finance market has seen a significant increase in users worldwide during the latest COVID-19 pandemic. India’s cryptocurrency movement is following suit by displaying noteworthy trading lately with cryptocurrency banks and exchanges. Even with the growing concern surrounding the Coronavirus, cryptocurrency usage in India continues to swell. There are several reasons why this could occur, including:
• Investors are turning away from traditional currencies and buying into digital tokens.
• Individuals are spending additional time at home and becoming more interested in cryptocurrency.
• Rumors of a cryptocurrency ban in India have generated more interest in cryptocurrency than ever before
No matter what the reason is for the increased traffic of India’s cryptocurrency market, it continues to maintain momentum. This gives current investors hope for the future, as digital tokens become more valued and sought after. New and potential investors are now getting a taste of how digital currency can be useful in the real world.
Pending Government Regulations in India
One major concern for crypto users worldwide is the involvement of government regulations regarding holding, trading, and selling digital currency. India’s cryptocurrency community is not immune to this fear. Back in 2019, a draft bill was proposed which raised concerns for many digital investors in India. This bill suggested a blanket ban on cryptocurrency products with the possibility of hefty jail time for crypto users.
While the crypto community feared this upcoming bill, nothing came out of it to date. Once again, speculation has surfaced imploring that it could still be possible in 2020. But investors are not so sure of its rationality. Imposing such a bill on India’s cryptocurrency market could have adverse effects, including loss of foreign investment opportunities and jobs. There is no doubt that there should be some sort of government regulations regarding cryptocurrency, but how is the question.
The Impact of Cryptocurrency in India’s Economy
Currently, the weight that India’s cryptocurrency holds in the local economy is very slight. Enforcing a complete ban on digital currencies would not alter the country’s economy much at all right now. However, India’s cryptocurrency market is quickly growing, and it could have a drastic impact on the local economy.
One significant factor that stands out is the number of women who currently hold cryptocurrency assets. This number has risen over 43% in the 1st quarter of 2020 alone, making crypto banks and exchanges take notice. Breaking down these numbers, more Indian women are partaking in crypto banks than dabbling in digital exchanges. This difference can be a result of:
• female investors are more apt to seek out crypto banks
• they are being catered to and sought after by crypto banks as solid potential investors
No matter who is investing in India’s cryptocurrency, one thing is certain, this market will continue to grow over time. 2020 could bring many more positive cryptocurrency dealings out of India.