India has once documented its future ambitions for boosting its Global Innovation Index (GII). Now this document has been used by Internet and Mobile Association of India in a whitepaper for reminding Government about its ambitions. Through this whitepaper a case has been prepared which has been put forward for the Indian Government’s consideration. In this paper the Association has argued that putting a ban on crypto trading would be a futile exercise. It has been argued that such an action would neither serve any useful purpose nor would it be any good.
It has been explained in the whitepaper that Indian crypto industry’s existence would be a key element for boosting micro-finance. It has been apprised that crypto trading is much more efficient, transparent and cost effective.
Currently there are more than 200 blockchain startups prevailing in India and most of them already operating. In 2017 it was found out that the crypto market capital in India was about US$ 13 Billion. However, thereafter the Reserve Bank of India, which is India’s central bank, had imposed nationwide crypto ban.
Against the ban, the crypto owners and exchange companies collective sought relief from the Indian Courts. The case was put to rest by the Indian Apex Court which decided in favour of crypto owners and exchanges. Resultantly the ban was lifted and the crypto industry once again started to setting up its roots in India.
However, when the pandemic came in late 2019 and early 2020, Indian crypto industry almost doubled instantly. There were mushroom growth of crypto trading platforms all over in India. In addition, a crypto bank was established in India with over dozen branches initially and 100 to come later on. This bank started crypto services and customers who wanted to invest in crypto were allowed to obtain loans.
But as of today Indian crypto has soared almost 400% since after the lifting of the ban by the Indian Supreme Court. There are more than 10 billion crypto investors and Bitcoin is one of the top crypto products in India as well. However, the Indian Government is once again on the verge of banning crypto trading.
It was further explained by the Internet and Mobile Association of India that if ban is imposed it would be a disaster for Indian crypto industry. The whitepaper suggested that in case of ban, proliferation would take place. Along with proliferation, there is a danger that many shadow markets would be established to continue crypto trading. Examples of failed bans such as drone flying and gold imports were mentioned in the whitepaper. Resultantly, the Government was forced to revert its decisions and evidently laws and regulations were incorporated.
But the ultimate deciding authority is the Indian Government and the Reserve Bank of India. However, so far no comments have been given by any Government Official.