Cryptocurrencies have captured the headlines since the Supreme Court removed the ban on that world in early 2020. Though India is a late candidate to enter the market. But now the country has embraced the crypto world with rapid growth. At present, there are as many as 27 million Indians who are holding crypto assets. The number is largely from Tier II and Tier III cities.
The Indian Crypto Market :
The United Nations Trade and Development (UNCTAD) recent report stated that 7.3% of Indians either acquired or had owned digital assets as cryptos in 2021. The considerable thing is if the cryptocurrency will be able to unofficially replace national currencies if allowed to grow unchecked.
Aniket Jindal, co-founder, of Economy, a blockchain developer platform said that the global cryptocurrency market is still highly volatile for several economic and socio-political factors. The only constant thing is the continued growth and invention of the Web3.0 space. Because more institutions invest capital into it. He added that Cryptocurrencies are coming into the mainstream with media outlets and exchanges showing them as an investment and trading asset. Blockchain is present here to stand. According to him, as regulations and government policies are getting into space, the market anticipates that user adoption will increase with the technology.
The notable thing is that the Reserve Bank of India (RBI) has been an unchanged rival of crypto platforms. Mentionable is that recently in a raid the Enforcement Directorate (ED) seized the assets of the crypto exchanges WazirX and Vauld.
Sankhanath Bandyopadhyay, economist, Financial Sector said that the owners of India-based crypto exchanges like WazirX and Vauld were unable to provide valid explanations of transactions and often refused them. Funds from financial technology (fintech) were collected through exchanges and transferred to anonymous foreign wallets. He also added that there should be accurate exposure to the Comptroller and Auditor General (CAG), Securities and Exchange Board of India (SEBI), and RBI by the individual crypto exchange. it can be made during income tax return filing.
Vineet Budki, the CEO of Cypher Capital, said that Blockchain can track the end-to-end movement of goods accurately in any type of error or blind spots.
How can blockchain fix the transaction risk?
TRUST intends to utilize a centralized paper board to track every VASP party on both sides of a transaction, and an encrypted point-to-point (P2P) channel to handle exchange data.
According to the recent Chainalysis report, more than one million dollars was traded in illegal cryptocurrency in 2021.
Furthermore, the UNCTAD report showed that the global use of cryptocurrencies had grown rapidly because of the COVID-19 pandemic. India was positioned sixth in crypto adoption. It is considered that various investors have profited from the high advantage and utilization of crypto.
According to the investors, the evolution of the ‘Crypto bill’ will be advantageous to the Indian government to balance cheques on the transaction.
Gaurav Mehta, founder of Catax – Simple Crypto Taxes, said that centralized acquiring of transactions and framework is expected to be laid due to the bills. The aim of forex transactions, which considers the purchase and sale of foreign currencies above specific limits, is notified to RBI. Similarly, the government will place a cap on crypto transactions and explain the disclosure guidelines.
Community Responses :
However, over 50% of crypto investors seem to not be obstructed by the crash. That group wants to increase its investments in crypto in the upcoming six months.
Additionally, 33% of surveyees were concerned due to the government’s guidelines that can decrease the crypto platforms.
Alongside, 26% of the respondents were also concerned regarding the issues such as hacks and exploits. 23% of surveyees showed concern about losing capital in a security breach.