As India passes new crypto trading law, there has been a 72% decline in crypto trades. The new law is intended to ensure consumer safety and prevent any potential threats from Bitcoin or other virtual currencies.
72% Decline in Crypto Trades in India
The bill, entitled “The Cryptocurrency and Regulation of Official Digital Currency,” was passed by both houses of the Indian Parliament with a majority vote. This proposed new law will completely ban the trading of cryptocurrencies in India, making it illegal to trade, hold, mine, or issue cryptocurrencies. The bill also suggests that a new digital currency will be created by the Reserve Bank of India (RBI) and made available to private and public institutions.
This is not the first time the RBI has banned cryptocurrencies in India. The Reserve Bank of India (RBI) issued a circular in 2018 barring regulated firms from providing services to anyone who deal in or settle virtual currencies. This ban lasted two years before the Supreme Court struck it down in 2020 because it violated constitutional rights. After this new law was passed, there was a 72% decline in crypto trades. While crypto exchanges like WazirX and CoinDCX have pledged to keep operations running despite this new law, many are concerned about how this could affect crypto trading in India.
Ultimately, India’s decision to ban trading of cryptocurrencies in India is likely a net positive for the digital asset class and the blockchain industry. Rather than opening the floodgates to a regulatory nightmare, policymakers have taken a step back and opted to wait it out. Hopefully, we will see other global leaders follow suit shortly.
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