The situation for cryptocurrency around the world is not the same at all in different parts of the world it is facing different sorts of issues as well as acceptance and a lot of good things as well but the thing is that at a global level if we have a look added as overall things then definitely things are not looking good for it as of now because one of the biggest markets of cryptocurrencies is going through a major turmoil right now which is the United States which is facing a lot of issues about the regulatory issues that it has which has forced a lot of companies that for involved in the cryptocurrency sector to leave the country or even shutdown their businesses.
On the other hand that has been countries were looking towards getting those businesses within their control by offering better opportunities as well as clarified rules and regulations which is something that is pushing the entire system towards a better future but there are a lot of countries as well as the same time just like your night this day which is one of the reasons why the sector is facing a lot of issues that definitely could have been avoided or at least made it is here for the companies to act to them and one of the biggest examples in the recent times has to be of India.
India in recent times has been hosting the G20 meetings and in the financial aspect of meetings there was a clarified stand from the side of India that they are going to be looking towards building a regulatory Framework that is going to be mutual for all the countries included in the G20 which is a very good thing and was looked upon by the entire world as the cryptocurrency sector was looking to develop in the recent times but at the same time the RBI which is the central bank of the country it has always been against the adoption of digital assets within the country which is a contrasting factor to what the government said which is something to worry about because the major authority in the country has a clash of opinions.
If you look at the past of India then it has not had any good relations with cryptocurrency as a whole because back in the day it was completely banned as a result of a case that was filed in the court. Still, after that, the band was left it was not considered legal nor it was announced to be a legal entity with the country. After a while, it was something that the RBI wanted to completely remove from the country. It got traction and gained a very huge user base and ended up being one of the biggest markets in the entire world of cryptocurrencies. As a result, the government did employ a few tax-based rules on the usage of cryptocurrencies as well as the entire transactions that were done in the sector.
Things were looking smooth and the stands towards cryptocurrency as well as the attitude that India had towards digital assets first looked to change and soften and towards being more inclusive towards them but the latest decision that India has taken does not say the same.
India recently put a shadow ban on the topic changes that did operate within the country which includes Binance, Kraken, KuCoin, and a lot of other prominent exchanges. The government is right now doing a crackdown on major exchanges that are allegedly operating illegally within the country, there has been a directive from the government to ban access to these websites essentially cutting off the Indian citizens from the services that these exchanges had to offer.
This comes as a very major blue to the Indian market which was exploding in terms of Crypto trading volumes and investors for also looking towards getting themselves more and more involved within the sector despite the very heavy tax rules that the government imposed in the field. As per many experts, it is believed that people were looking towards shifting to Offshore exchanges to avoid the 30% and the transaction tax that India imposed on Crypto in 2022.
The government looks like they are trying to frame this as situation as per them to look like it as an action for tax evasion that is happening with the help of these foreign exchanges and also alleging that these exchanges were operating without any registration in the country. This also raises concerns about the existing regulatory aspect of digital assets in the country as well as the determination of the Government of the things that they are looking to build in the future or the way they are looking to shape the sector within the nation as well.
Things do not look good at the moment because exchanges are facing a lot of trouble right now from the government and as a result, there will soon stop a lot of selective services towards Indian consumers that is going to happen or maybe a window will be given to the Indian consumers that they need to be withdrawing their assets before that as exchanges may want to leave the nation as well.
It will be very interesting to see how things are going to look in a couple of months after this decision and how are the exchanges going to act to recover themselves or even what are going to be their next decisions even if they think of quitting the market or whatever it is definitely will be something to look out for because India is a very huge market and getting through this is going to be a big task.
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Posted Using InLeo Alpha