Government Regulations in India: Legal State of Cryptocurrencies in Domestic Market
Some crypto investors are concerned with the government regulations in India on cryptos
Indian cryptocurrency investors are waiting in anticipation of the official verdict concerning the legal state of cryptocurrency in the country. Currently, bitcoin and other cryptocurrencies are beyond the purview of legal regulations in India. Digital currencies are still not authorized or recognized by any central authority in the country. They remain outside the scope of any guidelines, regulations, or rules, which makes Bitcoin, and other altcoin transactions riskier, since disputes arising from these exchanges will not be tried legally. To understand the general viewpoints and ideas revolving around regulations in the crypto market in India, we asked the general public if they believe that the Indian government will regulate the market.
Around 53.6% of the Analytics Insight survey respondents chose ‘maybe’ indicating that they are unsure if the government will levy regulations on cryptocurrency trading. In comparison, 39.1% of respondents feel that the government will deploy regulations for cryptocurrency trading. Wherein, 7.2% of them think that the Indian crypto market will remain decentralized and the government will not levy regulations.
The data is a testimony that India’s stance on cryptocurrency is evolving, and investors and crypto enthusiasts have a variety of opinions. One of the main pillars of cryptocurrency is that it obliviates centralization. So, to get a clearer perspective from the respondents about their stance on regulations in the market, we asked if they will continue to invest if the Indian crypto market is regulated. Almost 78.3% of the respondents indicated ‘yes’, whereas, around 21.7% of them feel that if the Indian government regulates the crypto market, they would not consider digital currencies as an option for investment.
The global cryptocurrency market is currently booming. There are several new investors joining the market every day. But one of the several persistent drawbacks that accompanies crypto is the mining. Cryptocurrency mining requires huge amounts of electricity, which results in draining the energy reserves of the country. Since India has not advanced its crypto regulations, the degrees of lawful mining continue to remain vague. Mining crypto is an energy-intensive process, hence, setting up blockchain pools in India, may not only be expensive and tedious, but may also drain the country’s energy reserves.
In the survey, a majority of 75.4% of the respondents feel that cryptocurrency mining, along with a minor impact by its deregulation is taking a toll on the Indian energy reserves, whereas, 24.6% of them feel that cryptocurrency mining has no effect on the country’s energy reserves.
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