Due to the rising conflict between India and China, India has done a digital strike over China-based apps. This news has raised many concerns in the crypto community of India as it can impact those crypto companies in the future, which are connected with China.
India put a ban on 59 Chinese apps, including the UC browser and famous social media application TikTok. On this ban, the government has responded by saying that they have taken action only to “protect the security and privacy of the nation.”
Territory Conflict between Two Countries
According to analysts, it is due to the recent clash between the Indian army and the Chinese army on the border. However, the app makers are worried about it as the region has the highest number of users.
Zhao Lijian, the spokesperson of Chinese foreign ministry, said:
“We want to stress that Chinese government always asks Chinese businesses to abide by international and local laws-regulations. Indian government has a responsibility to uphold the legal rights of international investors including Chinese ones.”
Indian government stated:
“the compilation of these data, its mining and profiling by elements hostile to national security and defence of India, which ultimately impinges upon the sovereignty and integrity of India, is a matter of very deep and immediate concern which requires emergency measures.”
Crypto Future in India
Crypto companies in India that are linked with China directly or indirectly are also worried about it. However, no Chinese-based crypto company has been affected by the recent ban.
Recently, the Supreme Court has lifted the ban on cryptocurrency and on banks’ involvement with crypto services. After that, prominent companies in the world have put their fresh investments in the country, including Binance, OKEx, FTX, and Coinbase.
India has banned those companies that are headquartered in China but not those who are based outside but have strong links with China. And most of the crypto firms are established in Singapore, Malta, and Switzerland.
Abhimanyu Kashyap, the founder, and CEO of Inblox Networ, said:
“Centrally regulated apps cannot be compared to Blockchain-based applications as the later is a borderless, decentralized infrastructure. Applications based on blockchain are not limited by geopolitical boundaries or owned by a country or entity, therefore posing no threat to data privacy.”