Investors are keen about the investments in cryptocurrencies these days and in India, people rushing to invest in it like never before. Although it shows you big dreams, this could be dangerous too.
As per blockchain data analysis, last April (2020), the investment in cryptocurrencies was $923 million, and this year it rises to $6.6 billion (Rs. 49,189 crores)! This might rise constantly as Indians are more attracted to cryptocurrencies these days. Due to the past Indian cryptocurrency market, this would be problematic. But Indians are celebrating this global investment without any stringent guidelines from the government.
How popular is cryptocurrency in India?
Back in April 2018, the central bank of India restricted the dealings with cryptocurrencies which is all of a sudden decision. This was then rejected by the Supreme court and as a result, the virtual currencies were in demand.
Recently, RBI has issued a statement circular which advised the Banks not to deny the cryptocurrency services for investors and still the authority is constant. Investors have taken this as approval from RBI for the cryptocurrency investment which could risk on a large scale for the investors. This doesn’t mean RBI is okay with the cryptocurrency investment. The government or RBI still has not given any guidelines for virtual currency. Therefore, investors should be cautious against future policies.
If the RBI and the government are clear about their policies against cryptocurrencies, it could sort out all the issues related to legal status, tax, and other payment solutions.
Many cryptocurrency people have shared their opinions towards the current happenings in the market saying that this virtual currency is going to create a big market for investors and businesses which can create more job opportunities in India.
According to a statement from our finance minister Nirmala Sitharaman, a draft has been designed for cryptocurrency which can open up opportunities for Fintech companies. She also said that it is considered for approval. It is said that this approval is delayed as the RBI is cautious about the outcome.
The crypto market is challenging for technology to enroot. All of these notes conclude that the crypto market is in bloom and it will going to make a big change in the financial sector in India.