50,000 jobs at stake as govt brings laws to regulate cryptocurrencies

Employees of cryptocurrency firms in India are a frightened lot as the destiny of the trade hangs within the steadiness.

Vinshu Gupta, Founder and Director, Nonceblox Blockchain Studio stated “It is easy to use privacy coins to launder money or use a crypto mixer to hide drug or blood money but crypto also employs over 50,000 people in India and has immense potential to push India as a true 21st century super power.”

“The crypto industry needs regulation but it should be inclusive. A taxation process like TDS where profits are taxed at withdrawal sources in India like exchanges is a good strategy to start. The more it becomes an open-ended ecosystem, the more value it will bring to the Indian economy,” he added.

Also learn: Crypto costs steady in India as traders await particulars of recent Bill

Cryptocurrencies have gained prominence ever for the reason that RBI ban was lifted in March 2020. India now has 15 home-grown crypto foreign money change platforms, consisting of greater than 10 crore traders. According to dealer discovery and comparability platform BrokerChooser, the full variety of crypto house owners in India now stands at 10.07 crore, which places it forward of each different nation on the planet. US stands at second place with the variety of crypto house owners at 2.7 crore, adopted by Russia (1.7 crore) and Nigeria (1.3 crore). In comparability, the variety of inventory traders registered with the BSE/NSE in India has risen to 7.4 crore at current whereas for mutual funds it stands at 11.4 crore. In phrases of share of crypto traders as a share of the inhabitants, India stands at fifth place at 7.3 per cent trailing Ukraine (12.7 per cent), Russia (11.9 per cent), Kenya (8.5 per cent) and US (8.3 per cent).

Indian crypto investments cross $10 billion

According to crypto analysis and intelligence enterprise CREBACO, Indian crypto investments have elevated to over $10 billion from $0.9 billion in April 2020, as crypto markets touched all-time highs.

“Currently, the government is set to introduce ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ in the winter session of Parliament beginning 29 November for consideration and passing. The bill aims to create a facilitative framework for the creation of the official digital currency to be issued by the RBI. It also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses. Currently, there is a lot of uncertainty but the government is making efforts to soon put out proper regulation with regards to crypto investment as it is quickly getting widespread across India,” stated Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services.

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