Banning cryptocurrencies may seem like the worst thing that can happen in a country where the coin is taking root and gaining popularity, but having unclear rules and regulations could be even worse.
Facing the ambiguity of crypto rules.
Using crypto assets for business purposes or offering cryptocurrency-related services was actually banned in India in 2018, but this ban has since been lifted. And again there was a new direct ban.
Regulators and the government seem uncertain and unclear about their overall attitude to the crypto space, as they constantly change positions. However, it is clear that the authorities generally do not approve of the ecosystem. It just had no idea of how to control the industry.
India may miss a real opportunity if it doesn’t take a stand soon. Even in China where decentralized cryptocurrency is banned, the country is still trying to implement blockchain. But in general, the lack of clarity is holding back growth and the potential to use new technologies.
However, the need for Bitcoin and decentralized cryptocurrencies continues to grow, and this should cause more concern to regulators, because it is much more difficult to control when interest has increased and become entrenched. India is also a place that can benefit from this new form of money.
And since the lifting of the RBI’s banking ban on crypto, trading volume on exchanges has surged as new optimism has swept the country. But now if the ban goes into effect, it will be much more difficult to enforce.