Crypto is getting a huge amount of interest in India amidst discussions in the legislature body about the cryptocurrency bill. Recently, Observer Research Foundation (ORF) has released a study regarding the Indian crypto-asset industry. In all its hindsight, they believe that a blanket ban is not a wise move.
According to ORF, the Indian Crypto Asset Industry has seen tremendous growth over the last five years. The country has over 15 million crypto-asset holders and has invested 6.6 billion rupees in these crypto asset holdings.
Moreover, India has two crypto unicorns CoinDCX and Coinswitch Kuber, and over 350 crypto startups. Other than that, it is expected that these numbers will flourish a lot faster in the future.
The report tries to state that India can capitalize on the opportunity of the crypto-assets due to its expanding state. In their words:
“Cryptocurrencies, like any other financial asset, need to be regulated in order to ensure consumer welfare as well as promote innovation. It would be imprudent to place a blanket ban on private crypto assets.”
Moreover, they also added:
“This would result in a significant revenue loss to the government and may encourage nascent industries to operate illegally.”
ORF had collaborated with Esya Centre to present a detailed overview of the growth of cryptocurrency in India. Also, it tries to propose a balanced regulatory approach.
The report also mentions that banning goods & services can impede innovation in new markets. It even gave the example of banning drones in 2014, which resulted in China capturing the market with their manufactured recreational drones in 2014-2018. Finally, after 2018, the Indian government introduced a regulatory framework to govern the use of drones in the country.