Like many other separate parts of the globe right now, India’s ongoing relationship with cryptocurrency is a complex one. On one side of the coin, the country is host to a thriving crypto market thanks to forward-thinking, tech-savvy population and a growing interest in alternative investment options. On the flipside, slow progress relating to concrete regulations has set an uncertain tone.
This excitement surrounding the future of crypto in India is perhaps most evident in the flourishing market for crypto options, which allow investors to speculate on the future price movements of digital assets without directly owning them. As interest increases and the population of India becomes more aware of the potential benefits a regulated scene, such as that of Taiwan, will undoubtedly offer, expansion of crypto options and usage will only rise further.
The current market for crypto options in the country proves that the excitement surrounding digital assets is already there. The only questions that remain are related to when regulatory changes will come and whether or not they will be clear enough to boost the market in positive, lasting ways.
A booming market with uncertain rules
At present, both domestic and international cryptocurrency exchanges in India are already allowing individuals to trade using a wide range of cryptocurrencies, in spite of a noticeable lack of clear regulations. While many are optimistic that changes designed to safeguard trades are on the horizon, numerous delays and no clear deadline for when the regulations will come have put a damper on many people’s enthusiasm.
Ambiguity and uncertainty are the largest obstacles surrounding long-term market growth. So, with bated breath, today’s cryptocurrency investors in the country are waiting on the Reserve Bank of India (RBI) to provide definitive guidelines. According to Coindesk, they’re taking a cautious approach right now, and are in no hurry to push any regulations at the moment. Until these guidelines are laid out and enforced, both businesses and investors have been left in a frustrating state of limbo.
Options are still taking off
As previously mentioned, India’s tech-obsessed and well-informed population is one of the main, driving reasons why there has been a noticeable surge in cryptocurrency popularity. Another major reason relates to the smartphone penetration in the region. These two reasons, when combined together, mean that crypto investing is accessible and approachable for large swaths of the population.
The need for regulatory clarity
Without clear guidelines to follow, all investors are currently using their assets to trade or purchase goods and services at a much higher risk. Officially, it could be argued that cryptocurrency is currently illegal in the country right now. But, with no outright ban in place any longer, individuals are allowed to buy crypto and trade it or use it to buy products from sites that accept crypto as payment.
Crypto use in India: from trading to entertainment
Currently, many Indians use their decentralized currencies to either make trades on crypto exchanges, buy certain products or engage with modern crypto gambling or betting platforms. While these aren’t the only uses for crypto that exist, they are by far the most popular.
Anyone who does want to make use of their existing crypto to place bets should be careful about which platforms they engage with. With no clear guidelines in place, there’s more risk that a site could be attempting to scam players instead of seriously offering the entertainment they’re looking for. To be safe, it’s wise to do some research before engaging with any site.
It’s advisable to stick with platforms and sites that have a clear track record of excellence and a healthy range of player reviews. Platforms like Stake.com are trusted, and also offer new players extra benefits, depending on certain circumstances. For example, you can use the Stake.com promo code provided by Oddspedia to triple an initial deposit. Remember that gambling with cryptocurrencies carries extra risks, so be sure to brush up on responsible gambling practices before diving in.
A shift from ban to regulation
It’s important to note that India’s overarching stance on cryptocurrencies has come a very long way. There have been many twists and turns for the state of crypto in India over the previous decade.
All the way back in 2018, the RBI effectively banned crypto asset trading, causing alarm for the country’s early adopters. However, a Supreme Court ruling in 2020 successfully overturned this ban. This reversal paved the way for a much better, more progressive approach to crypto asset trading, and the shift is evidence that there’s a growing recognition of the potential benefits that cryptocurrencies and blockchain technology can offer.
Learning from the Global Stage
The long and frustratingly slow wait for regulations to pass is not necessarily a bad move from India’s government. Now that the country’s own central government is actively looking into introducing a Central Bank Digital Currency (CBDC) using blockchain technology, things are looking up.
Learning from the strides other countries have made in this area in the recent past is helping the country’s decision-makers lay out a framework that benefits future growth instead of stifling it.
Observing how more established markets like South Korea are handling issues surrounding balancing innovation with investor protection will provide India’s regulatory bodies with valuable information on what will work and what won’t. This global dissemination of knowledge will undoubtedly shape a regulatory framework in the future that all but guarantees a healthy and sustainable crypto ecosystem within the country.
