The Indian government is bringing one or other law to tighten oversight of digital assets and in the latest development, they have moved crypto under Money Laundering Law. According to this law, any crypto exchange working in India is required to get the KYC form of the users on the platform. Actually, this is not new because all the exchanges in India are having that in place.
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But with this law, they will tighten the security more around the cryptos or digital assets. Also, they have to report any suspicious activity to the government, like any big transaction, any fraudulent transactions and other things. Just like jewellery, Real Estate or Casinos, crypto comes under the money laundering act.
How it impacts the users are still not very sure, but users have to show all the transactions on how they got the crypto, and this is not a good thing, to be honest. This makes users pay the crypto tax whatsoever. Since crypto entities have to maintain records, they can ask to send the details of the users at any time to the government.
This is just making the crypto look bad and people think it is a bad asset. And because of that more and more users are not coming into the crypto. If the government goes slow on crypto we can see more and more users investing it into crypto, but I do not see that is not happening soon.
Because of this most if my friends also not investing in crypto because they think that government can make it illegal at any day and thus their money will be lost. And to be honest this is true from their part too, because until and unless government supports it, users will not take that advantage of investing in it.