Friday, July 19, 2024

What would happen if India decides to ban Crypto?

The Indian Government has been doing a sort of dance with the crypto market, which has left investors with a bad taste in their mouths. The subcontinent has been on the fence about whether to fully allow crypto to become a valid financial instrument or to completely ban it.

Unregulated market with no resolution in sight

Currently, the cryptocurrency market in India is unregulated and there’s no authorized Government body that governs its existence. When we talk of the “ban” of crypto in India, the question pertains to whether the nation will ever have a legalized crypto exchange or not.

In the absence of an authorized crypto exchange, Indian buyers will be unable to convert their local currency into their preferred crypto with ease. Additionally, if any investors have HODLed cryptos to their name, they will be unable to liquidate them when they want to.

Sending it abroad may be the only solution

Due to the absence of crypto exchanges in India, any investors wanting to buy/sell crypto from here would need to get a foreign-residing counterpart to support them. Either by buying crypto overseas or selling their existing crypto through an overseas exchange.

While this solution is legal overseas, it can be expensive given the different conversion rates and fees for the international crypto trade. Additionally, if the Indian Government were to fully ban crypto trading, there may even be penalties levied on investors who use foreign crypto exchanges while they’re in India.

This financial risk can make crypto trading in India a tad riskier compared to in other countries.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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