Past years have been unevenly wild for virtual currencies. The crypto sector spotted a high tide of gains and sell offs as the market price went nearly $20000 by the end of 2017. These incalculable high tides has put virtual currencies in the eyes of the government.
Even in India, things were no different for the digital currencies as Reserve Bank of India ‘RBI,’ took notice of the the growing crypto community of virtual assets and further considering the illicit background of crypto’s made their thoughts on crypto clear when they announced a ban on crypto that will go into effect on July 3th 2018.
As Bitcoin started a top peak ride run in the November end of 2017, millions became not only aware, but interested in investing in the digital currecies along with other altcoins. This boom led Indian lawmakers and the RBI to issue warnings to potential investors that they could be involved in Ponzi schemes and risk total loss of their investments.
By January the Reserve Bank Of India issued a statement notifying citizens that digital currencies are not legal tender and in future would even ban crypto exchanges from making withdrawals and deposits by giving them a time limit interval to sum up their business.
Shorty after that statement, finance minister Arun Jaitley told Indian citizens that the Indian government would take action to ensure that cryptocurrencies wouldn’t be used to provide funding in illicit activities in the country.
The rough bear market that Bitcoin and the rest of the cryptocurrency sector has suffered could have a lot to do with second most populous country on Earth coming down so harshly on its trading and use.
In their fight to remove the ban, Indian crypto exchanges even appealed to the lawmakers and banks to probe and regulate the markets, but not to ban the trading of Bitcoin and altcoins altogether but on 3rd July, Supreme Court denied that appeal too.
Several Experts have argued that this harsh statements and regulatory actions of government have stunted the growth and adoption of cryptocurrency, even as a technology.