There is a lot of worry about India potentially banning cryptocurrencies. This comes after a wealth of worry regarding a possible ban in China and then South Korea. This news turned out to be wrong for the most part. Even so, governments around the world are definitely not making things easy for crypto investors.
Mining causing environmental problems
South Korea’s ban involved only cracking down on unregulated exchanges and moving towards promoting a safer and more regulated market. With plenty of shady exchanges running scams and more popping up every day, this should be welcome news. Unfortunately, many investors aren’t as savvy as they should be. This has led to plenty of rumors circulating and causing unnecessary stress.
India Not Banning Crypto, But Some Worry Remains
While doing a little research with regard to these big news stories will help anyone looking to invest in cryptocurrencies, it can still be difficult to decide when worrying is justified. The recent rumours that India was looking to ban cryptocurrencies is more of the same nonsense. That being said, the current rumors do ring more true than concerns surrounding Chinese and South Korean bans.
Cracking Down on The Shady Elements of Cryptocurrency
Bitcoin and other cryptocurrencies aren’t quite on the chopping block in India. Its Finance Minister, Arun Jaitley, did have some harsh words to say about them, though. It must be said, however, that his greater plan regarding crypto is still unclear. What was stated was that the Indian government is worried about cryptocurrencies being used to finance illegal or immoral activities. In addition to this, it was made clear that crypto will not be considered legal tender in India. Even though this stance falls short of an outright ban, this is still not currently great news for crypto. That being said, Jaitley also mentioned that the government was, like many others, proactively exploring the potential avenues for the implementation of blockchain technology in the future.
Dismissal of Cryptocurrency By India Is Just Playing It Safe
It seems that Jaitley purposefully distanced blockchain tech from individual coins or tokens currently being used. This suggests that while the blockchain is being looked into, he still has a dim view on current cryptocurrencies, including Bitcoin. He even insisted that he plans on discouraging people from using cryptocurrencies completely.
India Still Investigating Cryptocurrencies and Blockchain Technology
There is still a commission looking into what the Indian government should do about cryptocurrencies as a whole and it has been hinted that a ban might still be in the cards. This fear may end up being unfounded, but it does cause a certain sense of doubt. This, in turn, will probably have a deleterious effect on the markets while the specifics get ironed out.
India's Decision Unlikely To Affect Markets Much
Many investors, however, don’t believe that it will affect overall crypto markets too profoundly. Even more are convinced that this is more a case of the government being overly cautious. The Indian government is completely justified in their view, as there is a lot that’s still up in the air. The decentralized and private nature of crypto transactions does lend itself to shady investors. Jaitley, then, is only attempting to avoid promoting crypto. If he did, it would potentially open the government up to extreme criticism if the worst should happen.
Governments Will Remain Wary of Crypto For Now
Individual investors are lucky in that they can do what they like without that level of criticism. Larger institutions, such as banks and even governments have to tread more of a thin line. They do this to insulate themselves. The recent statements are just those of cautious politicians attempting to protect their citizens from predatory scams. The government’s stance will also serve to help safeguard their own established institutions. This trend can be expected to continue, at least until crypto markets begin to become less chaotic. The news that India is looking into blockchain technology is a good sign for now and we expect them to relax their restrictions eventually.