The continuous debate over the regularisation of cryptocurrencies in the India market has been running since long, with both the finance ministry and Reserve Bank of India (RBI) mulling on the future course of action. The much awaited crypto bill was expected to reach the Parliamentary table during the winter session but now it is floating in the cabinet for approval. The same bill was also listed for the budget session of 2021 but it did not get to the discussion round that time as well.
A lot has been going around in the crypto space ever since in the India market; several studies from research firms like Watcher Guru and BrokerChoose have revealed that India has the highest number of crypto investors in the world, the number is around 100 million. Coming to the price fluctuations, the most successful, yet unstable digital currency would definitely be Bitcoin. Considered to be the most popular cryptocurrency, Bitcoin’s lowest traded price was US$ 25,987 while it reached its peak price of US$ 68,789 in 2021, says data compiled from coinmarketcap.com.
This uncertainty in the crypto market at a time when the investments are at their peak is not sending good vibes to young startups foraying into the crypto space. The startup founders are though optimistic about the future and are expecting a larger participation from the Indian audience in the times to come. Sharing his views on the current startup scenario in the crypto space and their expectations from the upcoming Crypto bill, Roshan Aslam, Co-Founder and CEO, GoSats says, “While the Indian crypto ecosystem eagerly awaits the government’s decision to regulate crypto assets through the crypto bill, in the Union Budget 2022 we can expect the government to provide their initial views on crypto. This could include information on income or capital gains, taxation, and other certain views they have on crypto assets. However, nothing can be firmly stated until the crypto bill is released, as that would be the basis on which crypto assets will have a definition in India. Furthermore, we expect to see a boom in Indian crypto startups as the industry is growing massively. We are seeing many Indian and foreign VC’s being intrigued with crypto companies and the talent they have. With this degree of growth, we hope the government takes a positive regulatory stance in regulating crypto assets.”
Prime Minister Narendra Modi earlier also held a meeting to discuss concerns related to cryptocurrency and at the Sydney Dialogue appealed that democratic nations must come together to ensure cryptocurrency does not end up in the wrong hands. The Reserve Bank of India on several occasions has also highlighted that it feels cryptocurrencies like Bitcoin may pose a risk to financial stability and also questioned its claims of market value.
The Supreme Court last year, however, nullified the RBI circular banning cryptocurrencies. It also set aside an RBI circular of April 6, 2018, prohibiting banks and entities regulated by it from providing services with connection to virtual currencies in March this year. Now all eyes are on the upcoming Union Budget where the Indian crypto industry is expecting a favourable crypto bill which will help develop an effective ecosystem for the most hyped digital assets in the world.