It has been more than two years since there is a scuffle going on between the Indian regulators and crypto-community for the status of cryptocurrencies in the country. On several occasions, the Indian Government announced that it was going to ban cryptocurrencies. Many times, the Indian government announced it was going to decide the fate of cryptocurrencies in the country in the parliament sessions.
However, the final decision was never made and the cryptocurrencies were never given a final answer whether they were going to be legit or not in the country.
Similar to the rest of the world, the year 2020 turned out to be full of opportunities for the crypto-industry in India. In a matter of a year, more than five cryptocurrency exchanges were launched in the country. Over the course of a year, these exchanges shared some very promising facts and figures surrounding cryptocurrencies.
Even the regulators in the country admitted that the cryptocurrency business in the entire country was booming. The majority of the investors in the Indian crypto-community were retail investors who were investing huge sums of money.
The regulators revealed that only for Bitcoin (BTC), the cryptocurrency industry in India was generating more than $5 billion worth of revenue. The regulators even proposed to apply taxation on the revenues generated through cryptocurrencies. This would result in the country generating more than $900 million in tax revenues.
However, the latest developments in the cryptocurrency sector by the Government of India have shaken the entire Indian crypto-community to its core. Towards the end of January 2021, the Reserve Bank of India (RBI) proposed a new rule at the Indian Parliament. The proposed ruling requested the banning of cryptocurrencies in the entire country.
Furthermore, the RBI proposed the development of a framework for the central bank digital currency (digital-rupee) in the country. Initially, it was revealed that the proposal will be considered during the Lok Sabha’s parliamentary session. It was decided that the final answer around the banning of cryptocurrencies in the country by May of 2021.
However, one of the unknown sources claiming to be one of the parliamentarians has revealed that it has already been decided that cryptocurrencies will be fully banned in the country.
Although this is still a speculation, yet the rumors have gathered a lot of backlash from the entire cryptocurrency community in the country.
As a result of the above, the crypto-community in the country has become very impatient. They have challenged the Indian Parliamentarians in Delhi to be straightforward and come clean about their decision and intentions.
The owner of one of the major cryptocurrency exchanges “WazirX” in India, Nischal Shetty, has also strongly protested against the current ruling at the parliament.