India's Crypto Rollercoaster: Struggles, Bans, and the Quest for Regulatory Clarity

India and cryptocurrency haven't had a very good relationship

between themselves right from the start as there have been quite rough patches that your scene even from the beginning which was between the government as well as terms of cryptocurrency itself and the central bank of the country which is RBI or the Reserve Bank of India was very against the adoption of cryptocurrency within the country and also called for an outside band of it completely in the country.

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Over the years that has been quite a lot of things have happened in the Indian cryptocurrency market and basically, it has been something that has seen quite a lot of negative rather than just positive which has caused the industry in India to face quite a lot of issues rather than a very fluent growth but despite all of these things the user base in India has repeatedly grown over ears and that too at a very rapid pace which has made it a very big market in the entire world even after so many restrictions that the government has placed and the heavy taxation norms that have been imposed as well.

There have been a lot of incidents in the Indian market that relate to cryptocurrency which has caused quite a lot of actions to be taken and decisions from the side of the government as well to bring the situation under control or the way the government wants it to be such as a lot of criminal activity as people got scared as well as a lot of things that got out of control because there was no about this particular sector. People were claiming them to be something that they wanted justice for as there were a lot of cases of this kind that were filed in the courts of India.

However, the stands look to be changing after quite a while in the recently concluded G20 meetings as India was hosting those meetings and over there a particular set of meetings was placed for cryptocurrencies where all the finance ministers of different countries represented as well as cryptocurrency was an agenda and over there India did make a declaration or an announcement where it was mention that there would be a mutual regulatory Framework for the G20 countries which will allow all of these Nations to be accessing the different markets very strictly and proceed the operations that involved cryptocurrency among these nations in a more efficient manner which is going to make them a huge market in some short which is going to have a lot of lessons then the country is which have their frameworks.

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But even after that there have been quite a few decisions which do pottery different stands of the Indian government as India recently did make sure that all of the foreign exchanges in the country were banned and they were given a few reasons such as not following regulations and this kind of activities are not going to be allowed in the country and that exchange in which your band in the country involve top exchanges like Binance, KuCoin, etc.

If we talk about the central bank of the country then the perspective of RBI about cryptocurrencies has been largely negative and they have always called for a complete ban of digital acids within the country as they call it a threat to the economy of the country and the financial systems that exist within the nation as they believe that digital assets are something that is needed to be kept away from the Indian economy as they will be a direct competitor to the financial system that does exist already and can be one of the serious threats to the economy in the same manner which is why they have been continuously opposing the adoption of cryptocurrency and as a central bank of the nation they do have a very big same in anything that is related to finance within the country.

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Another thing that has happened in recent times is very interesting to look upon as an RBI official is the executive director has said in a panel discussion that "cryptocurrencies are something that is not even worth calling currencies and they do not have any underlying value within themselves which makes them quite worthless to be saying the least". He also added that the government is still figuring out a way with which they are going to be tackling cryptocurrency within the country as right now the country does not have clear jurisdictions about digital assets within the country and also lacks a regulatory Framework that is going to be defining how the sector is supposed to be functioning within the nation all that India has right now about cryptocurrency is that there is a taxation norm for crypto-based profits that people make in the industry.

There is no legal backing as well from the side of the government right now in India and it is very interesting to see that cryptocurrency and neither illegal nor legal in the country and that has kept quite a bit of loophole within this particular system as people do find it very confusing but still there are a lot of Indian exchanges which are working in the country and also providing services to the Indian consumers but if it talks about the foreign exchange is which used dominant within India as well have been fled out of the nation on the name of not following regulations within the country.

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RBI has been very critical about cryptocurrency right from the start they believe that currencies like these which are digitally based have no value and are a very big risk for the financial systems that are already operating in the country and that is going to be something that they want to be avoided which is why they always do want to be banning cryptocurrencies completely from the nation which is what they have been suggesting the government to do as well from a lot of years right now.

India is a huge market if talk about cryptocurrencies or any industry to be precise as the population over here is very big and the digital audience over here is also humungous and the awareness among people about this kind of Technology is also very good comparatively to other countries and that is also growing at a very rapid pace which makes it a very good market for cryptocurrencies in the upcoming years and it is going to be very interesting to see how the government of the country is going to be looking at this particular industry as they are decision and the way they are looking towards this particular sector is going to be shaping how it is going to look in a couple of years which is going to be very crucial for the entire cryptocurrency ecosystem.

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