Cryptocurrency is the talk of the town, especially after the Indian government expressed its deep interest in regulating it. Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was tabled last week and it created panic among some investors. The announcement was even followed by a substantial dip in the crypto market. Also Read - Facebook’s cryptocurrency project Diem is coming to an end
A recent statement from the Finance Minister Nirmala Sitharaman came as a relief for many. The FM claimed that the new bill does not aim to ban but to regulate cryptocurrency. Despite the statement, the sword of uncertainty still hangs on the investors and other stakeholders. We spoke to some investors and crypto exchanges about the recent move by the Indian government and how it’s weighing on them. Also Read - Indian smartphone market grew by 11% to ship 169 million smartphones in 2021
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Antriksh, a Delhi-based musician, got into the crypto market due to pressure created by the pandemic. He believed that financially, it seemed like an investment in an asset like gold. However, the high volatility led him to withdraw a lot of his crypto holdings. For him, the parliamentary bill had little to do with his decision.
However, he hasn’t given up entirely on the crypto ecosystem. He said, “I’m still optimistic about BTC and ETH. But only time will tell now.”
Samir, a small business owner, started investing in cryptocurrency as he found the concept intriguing. He believed in making smaller investments, which still give good returns. As an investor, he believes that conventional investments such as interest rates and schemes don’t provide good enough value and are neither lucrative nor simple.
He is of the opinion that introducing a bill in the parliament is one thing and implementing it on the ground is another. He strongly believes that this regulation bill is not reason enough to stop investing in cryptocurrency.
Crypto exchanges, unlike individual investors, are on the frontline when it comes to the new cryptocurrency regulation bill. While the government will have a hard time tracking individual investors, crypto exchanges can easily be regulated.
Raj Karkara, COO of ZebPay states, “We’re looking forward to a crypto bill that is inclusive. While we are also awaiting for the complete details of the bill, we believe the bill will help with the protection of investor funds and give clarity on the classification and taxation of cryptos in India.”
Karkara recommends every investor to stay updated with details from the official announcement of the bill and not panic sell.
Ashish Singhal, Founder and CEO, Coinswitch and Co-chair of IAMAI’s Blockchain and Crypto Assets Council (BACC) stated, “A ban would stop all innovations of cryptocurrencies in India itself. Any entrepreneur who wants to create companies on blockchain will have to move outside India. A ban will also wipe out the entire asset investing class that has built up in India. India has lost out on Internet 1.0 that saw the inception and rise of companies like Google, Amazon, Microsoft. Today, anyone setting up an online business in India needs to pay these infrastructure service companies to start their business. This trend will continue if we ban crypto here, and we will once again miss the opportunity of enabling innovators to innovate such infrastructure companies in India for the world.”
While a complete ban on private cryptocurrency seems highly unlikely, investors should continue to tread carefully. The old adage “don’t put all your eggs in one basket” applies really well here.
This story does not contain any investment advice. Investors should do their due diligence before putting money in any financial apparatus.