The Indian government wants to regulate cryptocurrencies – that’s no secret. However, despite the government’s attempts to table a crypto bill in Parliament that does away with all private cryptocurrencies, the fact is that cryptocurrencies are still alive and well in the Asian nation. According to data provided by Tracxn, a crypto industry tracker, India attracted a whopping $638 million in funding in 2021 over 48 funding rounds on a global scale.
After the crypto bill was withdrawn from tabling in the Indian Parliament, government sources said that wider consultations are necessary because of the dynamic nature of the crypto market. There’s still no announcement from the government as to when the cryptocurrency bill can be expected to be tabled in Parliament.
While India has undoubtedly reaped the rewards of the growing demand for cryptocurrencies, the country has also seen various battles between advocates and crypto companies. For instance, tax evasion accusations were recently directed in the way of WazirX – one of India’s most prominent crypto exchanges.
Despite the doubts that critics have regarding India’s booming crypto industry, one thing’s for sure – crypto companies have given jobs to hundreds and thousands of talented Indians. It’s also very likely that the country’s government will take a middle path towards regulating cryptocurrencies, i.e., cryptos will be regulated, but they will not be banned.
The major chunk of stern opposition towards cryptocurrencies in India comes from the Reserve Bank of India (RBI), which has stressed the need to ban cryptocurrencies altogether. The impending crypto bill also seeks to lay down a framework for creating RBI’s Central Bank Digital Currency (CBDC)