In early 2017 Indians were thinking how to get into the Cryptocurrency space. They were asking question like why dont we have cryptocurrency Exchanges in India. It would have been nice to trade in local exchange than in bitrex or binance as they waned to trade in INR (local currency) so as to liquidate their tokens as and when required.
And then some exchanges named ZEBPAY, UNOCOIN etc came up. At that time they used to trade only BTC-INR pair. They made a quick rapport with the local masses. And made BTC popular in INDIA. As their was very few exchanges which used to trade BTC people had very few options and thus Exchange operators made a huge profits. Soon market got filled with other competitors and more exchanges came up. Market was maturing very fast and new needs and demands were also coming very fast for example now the ppl got bored with only BTC-INR pair they wanted more tokens. They got sick of the trade models adopted by ZEBPAY n UNOCOIN where the difference between buy n sell price was huge, so it was easy to enter but difficult to sell, unless BTC rally more than 100-200$ u wont b able to see any profits.
SO KOINEX(another popular indian exhange) came with the solution to the problem they made their trading fee almost ZERO and buy and sell was market driven ,so u dont have to wait for the BTC to rally 100-200$ to book profit . Secondly koinex came with Five coins namely BTC,ETH,LTC,BCH,XRP all with INR pairs. As it was the only exchange in India which used to trade BCH at that time it saw a instant boom in trade volumes namely because of BCH. Then XRP volume also rose to himalayas. Overall in no time KOINEX became very very popular with INDIAN investors.
So by end of November eco-system of Cryptocurrency in India was building thick and fast and by then it already caught the attention of Indian Government and Indian banking regulator (RBI). RBI issued many warning to indian masses to stay away from cryptocurrency. It had no effect!. People kept on trading.
And by end of december newspaper was filled with news of people becoming millionaire n billionaire in few months by trading in cryptocurrency. PEople couldn't believe the news. At the time when many new investor was signing up in new indian exchanges . FinMIn of India made a statement asking ppl to stay away from cryptocurrency. Again it has little effect! ppl kept on trading.
Probably this time Govt. felt bad that nobody take them seriously! lol!
And thus by end of first week of January RBI pulled their socks and issued notices to banks to raided many exchanges. Deposit and withdrawal of money was stopped in many exchanges. And IT notices was sent to many crpto traders asking details about their coin holdings amount they have invested , profit they have earned etc.
All these action spoiled the fun of trading. People for the first time started worrying. Few exchanges like Ethexindia and btcxindia haulted any new deposit of TOKENS or INR from Jan 1st 2018 and eventually closed their operations by April 1st 2018. In the mean time big four exchanges were loobying with govt. to address the govt. concerns and start the business as usual. And after almost 2 months they started accepting INR deposits and picked up business slowly.
When everthing was looking good and ppl just took sigh of relief RBI dropped another bomb. This time a HYDROGEN BOMB! BOOOM!!
RBI released a notification urging all banks under their control to stop doing any business with Crpto-exchanges . Market reacted very strongly and prices of all coins in India falled drastically. Thankfully they gave 90 days time to settle all dues with the users. The 90 days window will close by 06th July 2018.
Its a major blow to the Indian Crpto-Exchanges. RBI's move will dry up the INR(local currency) flow into the xchanges. As no bank will support them after the RBI's Diktat . Irrespective of the competitors all exchange CEO's made a representation to the govt. and still lobbying to address the govt. concerns and find a work around to the existing situation. People are worried to think what will happen after 06th july. Will Govt. really ban Crypto-trading?? No-body knows for sure.
So what will happen if govt. go ahead with the ban.
All exchanges will either shift their bases to outside of India like Singapore , Malta or Swizerland etc. or stay in India and start trading crypto to crypto only like Binance by elliminating INR completely.
For regular investor its a bad news they may stop trading in crypto and move to regular investment option like SIP, Mutual funds etc because Profits looks sweeter in local currency then in some cryptos. So my prediction is if indian govt. go ahead with 06th july deadline seriously then that will the end of crypto in india. No new user will invest in crypto and and all old user will not put any new money in crpto.
Recently many Indian exchanges approached supreme court of India to challenge the RBI's diktat against Crypto-exchanges.
So who will benefit from this ban! Frankly nobody. Govt. will loose tax, and users will loose earning opportunities.
Then y Govt. will do such banning thing? Probably because they cannot regulate it properly and effectively. And they have to shoulder lot of responsibility if they allow crypto to mainstream. Ppl will ask lot of question to govt. if anything wrong happens.
Ok! So how can we get the golden days back?
Frankly speaking by educating People. WHAT!
Yes by educating people about what is crypto currency and how to use it effectively. What are the precaution they have to take? WHat is public key and private key? What is Wallet? Wallet providers? Withdrawal n deposit ? etc etc.
We cannot hide the fact that many scammers have looted the innocent peoples money as they dont know the technicalities of trading and holding cryptocurrency. In India below 1% people know about BITCOIN and other digital assets. And when a considerable part of the country is rural ,Crypto jargon's is no less than a rocket science to them. Thus educating more and more people about it is going to help us bring the cryptocurrency to the main stream.
So guys educate and tell your friends and families about cryptocurrencies in your spare time. Its a guaranteed solution to the present problems in crypto space.
And lastly I dont think Indian govt. can ban cryptocurrency for long because:
a) RBI itself mulling to introduce its own cryptocurrency.
b) Indian Authorities still dont know the nitty-gritties of the crypto space.
c) Cryptocurrency solves many burgeoning issues like eliminating fraud in Pharmaceutical, Eliminate problem of fake currency, Cryptocurrency by nature it is transparent., Instant money transfer regardless of international borders, Easy to tax as it leaves a digital trail behind it any many more.
INDIAN market is important because it is a billion plus nation. Even if it taps 10% of the market share, it will be a 10 billion market with a bullish future prospects.
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