By Shelly Melancon (Switzerland)
Last week, Bloomberg reported that the Indian government was proposing a bill that would change the classification of digital assets in the South Asian country. The proposed bill, if passed, would only permit institutional investors to have access to crypto assets. But the Indian parliament is still considering the bill which was submitted by Prime Minister, Narendra Modi.
The Parliament would sit today, November 29 to debate the bill and possibly reach a conclusion. Among the other considerations is the minimum amount that should be invested in cryptocurrencies and other virtual assets, although they may not be transacted or exchanged for financial services. The bill may or may not be passed into law.
Although the bill can be amended before being passed as a law, there are a couple of statements that can impact investors. The first is the demand for a total ban to be placed on all virtual assets, and the second is for an increase in the minimum investment; effectively making it possible for only institutional investors to have access to virtual assets.
Now, ahead of the Parliament session today, some analysts have predicted that the regulations passed will be mixed. Some say that the government might put a cap on the maximum amount that an individual may invest in digital assets while demanding that cryptocurrency exchanges require tougher and stricter registration and identification from users.
Also read:Scary Announcement, Bloody Markets
Following the news leak that the Indian government might ban cryptocurrencies, Indian crypto investors entered a panic and started selling off assets. As reported by Cointelegraph, Shiba Inu and Dogecoin were the most-sold assets on the Indian crypto market. That, in turn, affected the market as the value of assets dropped before bulls managed to stabilize it.
Analysts have said that it could be a precursor to the potential market crash that would follow an official announcement of a crypto ban in the world’s second-most-populous nation. India has one of the biggest crypto markets in the world and has attracted foreign investment from crypto firms, especially in the US.
Tougher Regulations, Closer Watch
Despite the government’s unfavorable body language, the crypto market in India grew by 641% in one year since mid-2020. This has led foreign firms such as US-based Coinbase and Singapore-based Coinstore to invest or purchase Indian crypto firms.
But the Reserve Bank of India has expressed its desire to have the government place a ban on cryptocurrencies because it feels that unregulated digital assets could potentially harm India’s economy. If the government does not ban crypto, some commentators say that there could be tougher regulations placed on the industry.
Some of these regulations could include the government determining what cryptos could be invested in, the minimum and maximum amount to be invested in, and what class of investors could explore the market. The government would also require more information about the parties in large crypto transactions.
The latter could negate the idea of privacy on which cryptocurrencies thrive. These are indeed tough times for the Indian crypto community.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.