Hello hives,

Cryptocurrencies gained a lot of traction in India after the bitcoin’s jump back in 2017. Since then the government became vigilant over cryptos trading and its regulation. With early knowledge, the GoI (Government of India) couldn’t find a better approach to tackle the cryptos regulation and it seems that GoI is still wandering in search of the balance. But this wanders of GoI come on the cost of killing the identity of cryptos and stagnating the innovation itself.

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The Bill illusion

GoI is about to enter with the bill later this month which seems to affect the trading of cryptocurrency already. The Indian crypto exchanges from then are taking dips and bloodbaths. But the early analysis of the bill gives a very different and not so pleasant feeling among the traders. The bill is about to talk about the regulation of cryptos and not the ban is clear by now yet we will have to wait for the bill presentation. However, the early rumors also state that the Indian crypto exchanges already betrayed the traders.

Indian Crypto Exchanges

The early news says that the GoI will let SEBI regulate the Indian crypto exchanges and Indian exchanges will be the only medium to trade cryptos. All the foreign exchanges will be prohibited to enter India and if any citizen of India tries to trade on foreign exchange and got caught then he/she have to pay a heavy fine of up to 5 Cr. Rupees. At first, it seems like the government wants to secure the traders in India from any scam coins by limiting them to Indian exchanges under the purview of SEBI but the story is all different from another angle.

Betrayal by exchanges

Under Article 19, WazirX and many new Indian crypto exchanges went to GoI during the drafting stage and stated that any job occupation if it is not life-threatening can be carried out and will be deemed as the way of bread and butter to them. But the early news states that Indian crypto exchanges by restricting the foreign exchanges will try to form a monopoly such that they will be the only medium to trade and which will be subject to direct trade manipulation. So where is the level playing field doctrine went? Where are the fair competitive practices if this becomes real? Another monopoly?

Dying Innovation

If Indian exchanges become the only way to trade then we will surely be going to lag in the early adoption of new launches like NFT, DEFI, or new cryptos. All the projects which were about to kick in will be lost to other countries as they will move away and find better conditions elsewhere to thrive. This will kill the innovation-driven communities and will limit cryptos as the trading entity only.