Cryptocurrency, also termed virtual or digital currency, is nowadays known to every second person around the globe. It has staggering importance in the modern trading market, and cryptocurrency platforms dominate over any other mod of trade or exchange. With the advancement of technology and access to an internet connection to all people, the growing demand for cryptocurrency has become apparent.
But Since a while ago, cryptocurrency has been facing massive criticism and hatred from the trading and market communities. To get complete guidance about cryptocurrency trading, just read more. Considering this, the Government of India might release a permanent bill that states that cryptocurrency as a payment alternative is banned, and strict actions will occur, into account for law-breakers.
Now questions arise from this decision like, why trading with cryptocurrency has been banned first? What are its significances? How can it affect Indian marketing and trading networks? And most importantly, how can it affect India's residents who own some cryptocurrency?
What can be the reasons behind the banning of cryptocurrency in India?
Cryptocurrency, as we know, is a decentralized form of transactions method, meaning that no government or central authority can interfere in exchanges made by it. Moreover, the Transactions history and exchange details are anonymous between the trading parties. So the governmental authority has no data about how many transactions have been made using an individual cryptocurrency platform.
Now, this may seem like a good idea, as no hacker or theft could access your confidential data or personal information. However, it also becomes the central point of illegal exchanges between criminals or terrorists, leading to a danger to the market exchanges. This amount of uncertainty in the market can be why it is banned in the first place.
Another reason can be that cryptocurrency is independent of the economic status of any country or region and fluctuates drastically, which is proportional to the demand in the trading platform. These drastic ups and downs can create massive losses and benefits to investors and affect prices of commodities due to exchanges made in constantly increasing or decreasing cryptocurrency value, which poses a significant threat to the economic constancy of the market.
How People can be affected by the banning of cryptocurrency in India
Cryptocurrency has a huge market demand in India. According to statistics and surveys. Around 8% of total India's population has invested in virtual currencies. The Cryptocurrency market has peaked at a staggering market value of $10 billion. With That amount of investments circulating in the economy and many transactions that have been made using crypto coins. A restriction on all of this can have drastic effects on the economy. With the absence of cryptocurrency, India's international trade will face some trouble due to currency restrictions and the tax imposed.
The Indian's economy will lose all worth of cryptocurrency circulated in the market. People who own crypto coins can no longer use those in buying any goods or trade with other commodities. It might be lead to the trafficking of cryptocurrency illegally in the international market, which cannot benefit the economic status of the country of its sellers. India's has one of the largest cryptocurrency economies, and banning it is not an ideal solution, economically speaking.
How can Government regulate cryptocurrency platforms?
It has been discussed above that banning cryptocurrency is not a permanent solution in a cryptocurrency dominating country like India and will create more problems than it solves. Instead, the Government can publish new laws implying better use of cryptocurrency in the market. One alternative Government can use to issue virtual currency certified by the Reserve Bank of India itself. It can be regulated by central authorities and can regulate the market.
Although these new terms can be a danger to cryptocurrency platforms, which consider themselves transplants and free of control from any authority. The ultimate way out is for the cryptocurrency companies to step forward and regulate cryptocurrency usage in the market and have strict restrictions for illegal payments or funding.
Such steps have been taken into account, and cryptocurrency platforms are becoming more secure and accessible every day. So, we have discussed how cryptocurrency is becoming the revolutionized form of payment and trading and its importance in a modern-day economy, and how banning something is not always the perfect solution. Instead, cryptocurrency should be evolving to become a better self of today.