Crypto News

India’s crypto investors yearn for proper regulation of the industry

  • The country’s central bank has previously raised concerns about the threat posed by the assets to the country’s macroeconomic and financial stability
  • Last month, two major exchanges disabled deposits via the popular payment system used in the country

The uncertainty surrounding India’s crypto space has left traders and investors with doubts and a slew of unanswered questions. This grim scenario has sent mixed signals in the country with one of the greatest potentials for crypto investors – India is the second most populous country in the world – and threatened the freedom of exchanges to operate freely.

New Delhi Income Tax Imposition on Crypto Could Be a Sign of Approval

The central bank’s growing concern for the well-being of investors is justified, warning that trading in digital assets is at investors’ own risk. With Apex Bank advocating an outright ban, the federal government’s tax imposition on crypto earnings is perceived as an endorsement of digital assets.

Some advertising regulations imposed with the tax appear to reinforce the idea that crypto is accepted by the country’s hierarchy. Late last year, Prime Minister Narendra Modi endorsed the adoption of new technologies, including Blockchainanother indication that the ban may not take effect.

Nevertheless, several investors in the country have already felt regulatory uncertainties. This comes after CoinSwitch users were unable to deposit cash through the United Payment Interface (UPI), a shared payment system regulated by the country’s central bank. This was also the case with WazirX, another crypto exchange operating in the country.

Airdrop from VNSMART India’s crypto investors yearn for proper regulation of the industry, Crypto Trading News

Regulation will bring more peace of mind to investors

Speaking at the World Economic Forum in Davos, the CoinSwitch co-founder stated that regulation will bring much-needed peace for crypto investors.

“Users don’t know what will happen to their holdings – will the government ban, not ban, how will it be regulated?” he told Reuters.

So far, the Indian crypto scene remains murky. Not only does it require passing legislation to encourage identity verification and the transfer of crypto assets, but also calls for measures to track suspicious transactions and report them to any authority should the need arise.

Source: Crypto News Deutsch

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