As nations around the world are accommodating crypto in their economic system, India is set to follow suit. While there were many speculations regarding crypto’s unclear legal status in the country, it now seems that India will only regulate the market and not ban it.
Business Today broke the news of this development, stating that India will probably introduce cryptocurrency regulations in the budget for the next financial year. It would probably be a law to govern all crypto-related activities in the county. The finance ministry of India has shown positive signs with respect to crypto regulations. As it stands now, the chances of India banning crypto are little to none.
Many Indian crypto exchanges are gaining prominence in the market, despite no clear legal status. More and more people are leaning towards investing in Crypto with apps like CoinSwitch Kuber, Wazir X, and CoinDCX. In the light of the growing demand for Crypto, the government can earn significant revenue from taxation. As reports suggest, the Indian government will tax crypto under commodities like gold and silver. Doing so will allow it to charge on transactions and profits. The net benefits of regulating crypto outweigh the potential dangers.
India holds immense potential in the crypto space by virtue of its huge young population. As the digital divide breaks down, more and more people will have access to cryptocurrency trading and investing. Regulating crypto in India shows the promise of increasing institutional investments, but the fear of inefficient government mechanisms still exists.