The government’s inaction on cryptocurrency regulation has sparked a barrage of lobbying, raising investor fears about the hazards of uncontrolled markets with severe price volatility. Many investors aren’t sure how to do it.
Furthermore, there are worries about the equipment used to launder money and finance terrorism. Sources informed the TOI that this is a problem that has been highlighted by other organizations throughout the world.
Whilst Supreme Court overturned the RBI’s ban, the government planned to present a bill on cryptocurrencies throughout a parliamentary budget hearing, but the bill was unable to do so because the meeting was reduced.
The administration stayed mute regarding the bill’s destiny during the monsoon session, despite the fact that it was recently introduced with Finance Minister Nirmala Sisaraman, who was sent to the federal council for approval before the bill was submitted to Congress. The next meeting will take place in at least two months.
Crypto exchanges, on the other hand, have taken advantage of a short opportunity to begin large-scale lobbying efforts with a number of countries and agencies, raising worries. A prohibition on digital currency transactions, according to the exchange, will result in job losses.
Investors may become stuck in financial products as a result of the prohibition, although reports indicate that investors will be given a 3-6 month opportunity to leave.
Cryptocurrencies are not an asset class, according to certain regulators. Furthermore, there are questions regarding the legal foundation for the presence of some exchanges that are not regulated by the Sebi or the RBI.
According to sources “Global adjustments are needed to combat the challenges posed by cryptocurrencies. They are not currencies because only sovereigns can issue currencies. There is a significant risk in permitting these devices.”