A large number of bitcoin investors reside in India, one of the world's most populous countries.
Investments in these tokens just surpassed the $10 billion level. Crypto-money regulations, which are due to take effect in February 2022, are expected to have a significant impact on the entire ecosystem.
This "grey" patch needs to be colored...
Crypto-holding Crypto has become a big component of the identity, financial worth, and/or business of Indian innovators, entrepreneurs, and venture capitalists. These are resourceful, connected, and globally mobile individuals who have been planning for prospective cryptocurrency regulations for years.
Many of them are ideologically committed to the cryptocurrency's success. Paytm, based in India, is likely to be the next company to join this club.
Consider the most recent comment made by a representative of Paytm, India's digital payments pioneer. During a recent interview, Madhur Deora, the company's Chief Financial Officer, elaborated on the aforementioned problem.
“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.”
This is clearly the case in this instance. Even though Indian regulators rejected the idea of a complete ban, there is still some doubt.
So, why is this significant?
Users and merchants were previously barred from using the UPI deposit option on crypto-exchanges by one of India's oldest banks, the State Bank of India. Users were left with no choice but to use alternative money deposit methods that take longer to complete and charge additional expenses such as convenience fees.
Banks, on the other hand, will no longer be able to stifle crypto-investors and exchanges as a result of this development.
(*The Unified Payment Interface, or UPI, allows all bank account holders to send and receive money from their cellphones without having to input their bank account details or their net banking user ID and password.)
In general, the legislation governing these digital tokens will undoubtedly make India one of the leading nations in the handling of these assets. Consider this: despite the fear mongering, India's crypto usage has topped $10 billion. Now all that is needed is for the country to see some regulatory clarity.