Recent reports coming from India claim that the government intends to introduce a new law <a href="https://www.cryptoknowmics.com/news/india-government-plans-to-introduce-a-new-framework-to-ban-cryptocurrencies/">banning the trade of cryptocurrencies</a> in the Republic. Many crypto users and critics were shocked to hear about the move, as many Asian economies are harnessing the opportunities and strength of regulated <a href="http://www.cryptowisser.com/exchanges/">cryptocurrency exchange markets</a>. The bill will be discussed amongst the federal cabinet before parliament decides on the outcome.

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India has seen great success with blockchain and the use of <a href="https://en.wikipedia.org/wiki/Cryptocurrency">cryptocurrencies</a>, but it’s the trading aspect of the industry that has come under scrutiny. There is certainly a cloud of uncertainty that lingers over the exchange of digital currencies. While the vast majority of cryptocurrency exchange platforms are regulated and monitored for any malpractice, the anonymity of exchanges, coupled with trading pairs and fiat money for digital, makes for a lack of trust from governments.
<h2>Crypto Ban Not a First for India</h2>
This isn’t a new topic for India, having banned crypto transactions after a series of frauds back in 2018. Numerous exchanges took the case to court and won at the start of 2020, which resulted in an influx in the number of trades. This surge in the number of Indian citizens using cryptocurrencies must have had a lasting effect on the government, as now are we seeing a reaction to it. Indian remains a powerhouse in the East, notably in the tech world, and any decision made may influence neighbouring countries' position regarding trades. 

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But India must be smart about this, as their economic rivals China are making moves in the other direction with plans to create a central bank digital currency. This is something India has stated they plan to pursue as well, but without trading it makes things complicated. Moreover, if India doesn’t change its stance regarding trading, they subject more than 1.7 million Indians to potential losses of digital assets - not to mention businesses based in India and abroad. The exponential growth of the cryptocurrency industry must be acknowledged by the Indian government. The potential loss to business is immeasurable. 
<h2>Better Crypto Regulations Required</h2>
The government needs to look to regulate and monitor the use of exchanges, that way they would be able to continue to thrive in the cryptocurrency world. There needs to be a framework in place, so that customers and regulatory bodies can get a grip of things and have measures in place to punish any foul play. It appears that the speed at which cryptocurrencies are spreading and appealing to the general public, has forced governments across the globe to consider the idea of creating a national currency.

Encouraging exchanges of currencies is one thing, but actually taking the reins and creating a streamlined currency that can be exchanged and traded on an international stage is what appears to be the right move. One can only speculate regarding the bill, but a motion to pass the bill would be a huge step backwards within the cryptocurrency sphere in India.

Is Another Crypto Ban on the Cards for India?

Crypto Ban Not a First for IndiaThis isn’t a new topic for India, having banned crypto transactions after a series of frauds back in 2018.

As a keen observer of every latest development in the crypto world, Guest has formed a sound understanding of how the blockchain and cryptocurrency works. Guest likes to keep a tab on all the trends within the crypto industry and treats our readers with insightful content.

Is Another Crypto Ban on the Cards for India?

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