$6.6 Billion Indian Crypto Market Pushes for Regulation
India, the world’s second most populous country and the world’s sixth-largest economy by nominal GDP as well as being the third-largest by purchasing power parity (PPP), has a massive appetite for cryptocurrency.
So vast is the country’s market for absolutely everything under the sun, and so enterprising and entrepreneurial is its population that the cryptocurrency market has grown massively from $923 million in April 2020 to nearly $6.6 billion in May 2021.
This makes India a hugely influential nation in terms of cryptocurrency market capitalization and in terms of how cryptocurrency can be used to power various commercial activities in a nation which is perhaps the most diverse on earth.
The Indian government has now taken an interesting view on how it should regulate cryptocurrency within India’s borders, adding to the clear message that the only way forward for cryptocurrency users is to work with regulated platforms and regulated exchanges which can easily expand their range of services according to the rapid development of blockchain and cryptocurrency-related technology and infrastructure as regions of major significance go down the route of regulation.
India’s Former Reserve Bank of India (RBI) deputy governor R Gandhi made a case for treating and regulating cryptocurrency as a separate asser class with a view toward enablign governments around the wold to effectively stem any illicit activities associated with digital currency.
CoinMetro is a staunch advocate of regulation, and has been regulated and fully licensed as a cryptocurrency exchange under Estonia’s digital asset exchange licensing system, one of the most respected authorities in this sector globally. There is no other way to prosper in the digital currency world other than to be fully regulated.
Full regulation is a welcome direction that nations with large markets such as India, the United States and Great Britain are now taking, following the lead of Estonia, which is the world’s most digitally advanced society and the jurisdiction in which CoinMetro holds its cryptocurrency exchange license.
There has been a significant amount of debate over the years, however the need to regulate cryptocurrency as an asset is now very much on India’s agenda given the immense growth in digital currency activity within the country. Mr Ghandi has stated this week that crypto assets are exactly that – assets, and therefore should be regulated as such.
This makes an interesting point, in that today’s traditional assets are going through a buyer and seller orientated revolution.
Oil has risen massively in price due to demand, whilst other traditional assets such as gold have been different in their patterns of demand.
Oil is a consumable commodity, whereas gold is used for storing value. Crypto can be viewed as the alternative to gold and other physical assets that are never consumed, however crypto has far more versatile functionality as its blockchain protocol-driven versatility – for example smart contracts and overseas settlements as well as CoinMetro’s offering of business accounts for small to medium sized enterprises to hold treasury in crypto – are some of the reasons that crypto is of such great interest to people who would perhaps never have stored assets before.
Mr Ghandi’s perspective is that people have fully understood that it should be deemed as an asset, and that once this has been accepted universally, it becomes easier to have regulation around it and, quite rightly, he said that all jurisdictions worldwide should have a clear framework by which any part of this economic activity should not be seen as supportive of any activity that is not above board.
We agree totally and full regulation and full transparency in order that we can all make our way as participants in the empowering future that is decentralized finance is absolutely necessary.
If India takes that route and the US completes its regulatory framework for cryptocurrency, that is a combined total of almost 2 billion people. That’s almost one third of the world’s population. Regulation, therefore, is now essential for anyone wanting to participate in the bright and massively empowering future of crypto.