India may soon come into the list of countries banning cryptocurrencies for trading and investing. In a report published by Economic Times, some unknown government panel has advised lawmakers to restrict its operations in the country which is witnessing a steady growth for past few months. There is no official notification and confirmation from the government officials on the issue yet.
In the article posted, it reported that government might cease operations of cryptocurrency dealers or exchange in the country. Cryptocurrencies have gained huge traction in the country with the price of each bitcoin touching Rs 4.9 Lakh against Rs 1.8 Lakh three months back. According to Forbes India latest release, Zebpay, a bitcoin exchange operating in India is currently adding over 2 Lakh users to its app-based trading platform every month.
Reacting strongly to the news report, many experts are suggesting a ban would not work in the first place as people who all are interested in trading cryptocurrencies will move to foreign exchanges. Rather, there should be proper regulation to avoid any illegalities in the system.
Hesham Rehman, CEO & Co-founder, Bitxoxo, a bitcoin exchange operating in India said: “Instead of closing cryptocurrency dealers, the government should take steps to curb buying and selling of bitcoins or cryptocurrencies in cash. This move can reduce illegalities in the country.” he added: “providing suitable guidelines to bitcoin exchanges could help exchanges and buyers of the currency. Exchanges had earlier requested the government to penalise individuals who are trading in it using cash.”
The valuation of whole cryptocurrencies has touched a market cap of $200 billion in which 60 percent goes to Bitcoin. The government in the matter cannot drag its feet further and need to come out with a set of rules and regulation clearing the air on the issue.