In 2018, The Reserve Bank of India (RBI) imposed a nationwide ban on cryptocurrencies. However, the order was overruled by the Supreme Court of India in 2020. Despite the court ruling Indian Government did not bring any bills in the region that made room for cryptocurrencies. In the ongoing year, the federal government tried to bring another injunction against cryptocurrencies by sanctioning the banks to freeze the account transactions that are oriented towards digital assets.
The government has also expressed an interest in offering the citizens a centralized digital coin that is issued by RBI. The Indian finance minister, Nirmala Sitharaman, told the media that she is personally focused on the subject of Fintech and blockchain, and there is an environment of encouragement about the research about digital currencies in the region.
Indian Crypto Holders May Lose their Crypto Assets
The government of India has taken a stern stance on digital currencies from the very beginning. The citizens of the second most populated country in the world are unable to store their crypto assets into a local wallet or with any public sector banks. In a latter act of the finance minister, it was made mandatory for enterprises and businesses to disclose their crypto.
Most consumers from India have stored their digital assets in foreign banks and digital wallets abroad. However, they are now in for a rude awakening with the recent stance of the government asking for full disclosure. If the investors share the details of their crypto reserves, there is a good chance that the government moves to impose a legal ban on them. Meanwhile, if they failed to do so, they could come under fire while converting and cashing their assets out into the Indian banking system.
The first example of the successful launch of cryptocurrency exchange is Coinsbit. Coinsbit is an extension of a European-based company that has branched out in the crypto markets of India. The company also arranged for a massive airdrop scheme to make it more popular among the masses. The launch of Wazir X by Binance was met with warmth and enthusiasm, and the server crashed down due to the massive download rush.
The same exchange reached a daily trading volume of $370 million during the second day of its commencement. The company is now looking at a billion-dollar mark. There is also a Coinbase branch in India that has reached a $100 billion evaluation already. Some people like Balaji S. Srinivasan are a great proponent of mass-level crypto adoption in the region. Balaji is the former CTO for Coinbase.