India, one of the world’s most populated countries, is home to a huge number of cryptocurrency investors. Just recently, investments in these tokens crossed the $10 billion mark. Needless to say, crypto-money regulations, set to be implemented by around February 2022, are expected to affect the entire ecosystem.
Coloring this “grey” patch…
Crypto-holding Indian founders, entrepreneurs, and VCs have made crypto a significant part of their identity, net worth, and/or business. These are resourceful, connected, internationally mobile people who have been preparing for possible restrictions on cryptocurrencies for many years.
Many of them are ideologically dedicated to the success of cryptocurrencies. India’s Paytm is likely to be the next addition to this group.
— Deccan Herald (@DeccanHerald) November 4, 2021
Consider the latest statement made by an executive of India’s digital payments pioneer – Paytm. Madhur Deora, the company’s Chief Financial Officer, shed more light on the aforementioned topic during a recent interview.
“Bitcoin is still in a regulatory grey area if not a regulatory ban in India. At the moment. Paytm does not do Bitcoin. If it was ever to become fully legal in the country, then clearly there could be offerings we could launch.”
Well, this certainly is the case here. Even though the idea of a complete ban has been discarded by Indian regulators, some uncertainty still exists.
Now, why is this important?
Not so long ago, one of the oldest banks in India – State Bank of India – restricted users and merchants from using the UPI deposit option on crypto-exchanges. It left users no choice but to use other payment deposit options that take more time to complete and extra fees such as convenience fees.
However, following this development, banks will no longer be able to hinder crypto-investors and exchanges.
(*UPI or Unified Payment Interface allows all bank account holders to send and receive money from their smartphones without entering bank account information or net banking user ID and password.*)
By and large, regulations of these digital tokens certainly will make India one of the leading nations to handle these assets. Consider this – Despite all the FUD, crypto-adoption in India has surpassed $10 billion. Now, if only the country finally sees some regulatory clarity.