Cryptocurrency Ban: India not to ban crypto rather consider it as commodity

The Cryptocurrency Ban in India has kept the whole world interested in how the government is regulating and bringing up norms and regulations to the crypto-industry in India. The investors and the crypto-enthusiasts are also keen to know what the future of the cryptocurrencies are in India.

The government’s viewpoint on Cryptocurrency Ban

The RBI Ban that was imposed on the financial institutions on withdrawing their services from any entity related to cryptocurrencies hit the Indian crypto industry really hard. The Supreme Court supporting the decision of the RBI gave the final verdict on July 5th that the financial institutions in India will no longer have any transactions with any entity related to cryptocurrencies.

However, this is not the end of cryptocurrencies in India. Transactions can be carried out via crypto to crypto or P2P transactions and are still valid. Many Indian crypto-startups like Zebpay have introduced their P2P pairs of cryptocurrencies and at the same time, they have stopped the fiat deposits and withdrawals.

This is the sign of the enterprises evolving to the regulations imposed by the government. WazirX, an exchange platform which recently launched its P2P trading platform for the Indian investors allows both of the counterparties (buyer and the seller ) to trade both in fiat and in crypto. WazirX operates through an Escrow account which enables the platform with such P2P services.

P2P trading has come up as an emerging solution to the recent regulations that are being imposed by the government. The investors are also heavily relying on such options in order to either liquidate all their investments or to continue trading with this alternative.

R Gandhi, a former RBI deputy governor also quoted:

Treating them as commodities will also make it clear to some investors that cryptocurrencies like bitcoin aren’t real currency, said. “If these are used to settle transactions, then it acquires the nature of currency. So that is one thing that one needs to be wary of. But if people want to invest in a commodity then that is different, because then we can assume that they are aware of the risks involved.”

The Indian Crypto-Startup’s viewpoint on the Cryptocurrency Ban

Many leading exchanges often go through a lot of constant follow-ups when it comes to the legal compliances of their business in this industry. All the existing exchanges have either moved to P2P trading or crypto to crypto trading.

Even though the enterprises in this sphere think that there will be more regulations coming to this industry but cryptocurrency ban should not kill the industry completely.

Shubham Yadav, co-founder of Coindelta, a Pune-based cryptocurrency exchange, quoted in a report from Quartz:

“Though cryptocurrencies belong to a new class of financial assets, we can still welcome them as commodities and not currencies because of their high volatile prices,” “Many countries have been already going in this direction, including the US.”

In order to address the government’s other concerns around security, Indian cryptocurrency firms have already agreed to be open for more scrutiny.

“We are also ready to work with the government and assist them on creating a regulatory framework. We can help them in designing a monitoring system for blockchain where it can remotely monitor all transactions,” said Yadav.

The regulations are something that will be properly scrutinized by the government. With such news, the investors and enthusiasts of cryptocurrencies can hope for the good. Even though right now it may seem like a far-fetched dream, but there is still a lot to see how the ecosystem evolves in this country.


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