It’s Already Too Late for India, Even if its Legalizes Bitcoin Exchanges

On March 30, less than 6 months since the shutdown of India’s largest bitcoin exchange Zebpay, one of the last remaining cryptocurrency exchanges in India, Coindelta, closed down its services.

In an official statement, Shubham Yadav, the founder of Coindelta, wrote that there has not been enough progress in the process of overturning the decision of the Reserve Bank of India to prohibit local banks from dealing with bitcoin and crypto-related businesses.

It’s Already Too Late For the Bitcoin Industry of India

The Supreme Court of India has held hearings throughout the past 12 months to engage with industry executives and companies to potentially overturn the decision of the RBI and legalize cryptocurrency trading in the country.

The optimism towards the efforts of some government officials and the cryptocurrency task force established by the government initially led both investors and startups in the local market to be positive about the future of India’s cryptocurrency sector.

Coinbase 2

In December 2018, according to a report released by the New Indian Express, an official at the cryptocurrency committee composed of RBI, SEB, and Ministry of Electronics and Information officials, said that there is a consensus among officials to not dismiss crypto assets as illegal payment methods.

An official at the committee who asked for anonymity due to the sensitivity of the topic said:

We have already had two meetings. There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on. We will have more clarity soon.

But, it seems as if it is already too late to take action. Since the statement of the official was made five months ago, the cryptocurrency sector of India is no closer to seeing progress in legalization and government recognition.

India, crypto, bitcoin, cryptocurrency

India’s crypto industry witnessed robust gains over the years but has largely been nullified following the central bank’s banking ban. | Source: Shutterstock

More importantly, exchanges, which rely on transactions and local users to remain solvent and maintain a stable revenue source, have shut down.

The closure of exchanges despite the resources, capital, and manpower put into establishing a sophisticated infrastructure to process cryptocurrency trades suggest that exchanges do not see a future wherein practical regulatory frameworks are created.

Coindelta founder Shubham Yadav said:

It has been really difficult for us to operate Coindelta exchange for the last 6 months. The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services. There has not been any significant progress in the Supreme Court case which makes it difficult to predict when we will see the regulation.

Yadav further emphasized that there exists a limit until which exchanges can operate under unfavorable circumstances. Throughout the past year, exchanges that have remained open were running with no revenues and high expenses.

“Running the exchange is very expensive in such unfavorable environment. We have been operating at a minimal trade fee, bearing all the costs ourselves ensuring that your trading experience remains unaffected in the current unregulated environment. Economically, it’s no longer viable to continue with the exchange,” he explained.

Don’t Expect Industry to Revive Quickly

Indian government officials may expect its cryptocurrency sector to flourish if and when the government decides to regulate cryptocurrencies.

But, companies that have lost millions of dollars in the past year trying to operate under an inoperable environment is unlikely to come back anytime in the near future.

The best bet, in a highly unlikely event that India legalizes bitcoin exchanges soon, is foreign companies and leading exchanges expanding into the Indian market.

It remains to be seen whether exchanges would be willing to take the risks given the reluctance of the government of India in facilitating the growth of the local cryptocurrency industry and its policies that essentially force cryptocurrency exchanges out of the economy.

It’s Already Too Late for India, Even if its Legalizes Bitcoin Exchanges 1
blank
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

blank

E-Crypto News Executive Interviews


blank

bitcoin
Bitcoin (BTC) $ 32,548.00
ethereum
Ethereum (ETH) $ 2,074.16
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 290.32
cardano
Cardano (ADA) $ 1.18
xrp
XRP (XRP) $ 0.598070
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.192609
polkadot
Polkadot (DOT) $ 12.94
binance-usd
Binance USD (BUSD) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 32,548.00
ethereumEthereum (ETH)
$ 2,074.16
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 445.80
litecoinLitecoin (LTC)
$ 120.53
bitcoinBitcoin (BTC)
27.651,97
ethereumEthereum (ETH)
1.762,15
tetherTether (USDT)
0,849575
bitcoin-cashBitcoin Cash (BCH)
378,74
litecoinLitecoin (LTC)
102,40
bitcoinBitcoin (BTC)
23,914.48
ethereumEthereum (ETH)
1,523.98
tetherTether (USDT)
0.734745
bitcoin-cashBitcoin Cash (BCH)
327.55
litecoinLitecoin (LTC)
88.56

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
blank
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020
KuCoin hackers steal $150 million
KuCoin Exchange Hacked But Insurance Will Cover The Stolen $150M
September 29, 2020

Blockchain/Cryptocurrency Questions and Answers

Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021
blank
What Is Plethori Platform And How Does It Work?
June 12, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d

bitcoin
Bitcoin (BTC) $ 32,745.00
ethereum
Ethereum (ETH) $ 2,061.40
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 290.94
cardano
Cardano (ADA) $ 1.17
xrp
XRP (XRP) $ 0.596425
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.192266
polkadot
Polkadot (DOT) $ 12.91
binance-usd
Binance USD (BUSD) $ 1.00