Can India Have A Cryptocurrency Scam In The Near Future?

This is the era of virtual transactions through virtual money and how the world is witnessing an increase in investments and usage of cryptocurrency. Cryptocurrencies are mined using Blockchain technology which simply means “A system of recording information in a way which can never be changed, hacked or cheated with”. Now, for layman this might be a very useful definition but as an investor and a trader of this Blockchain system, one has to have a deeper knowledge as this is far more volatile than the stock market. Currently, in India, there is no regulation for trading or investing in crypto. Can this be an opportunity for India that it should seize or this is a foundation for many more scams to come in the future as smart investors and traders have many ways to invest and trade in crypto, even if the market is regulated or not?

In the leu of recent comments by Finance Minister Nirmala Sitharaman, “rather than an absolute ban, there may be experimentation, exploration, and encouragement of the technology behind these”. Such comments are proactive but are they alone enough to implement a rigorous Regulation on the market and power boost the IT infrastructure of the nation, which is the foundation for the blockchain system. Moreover, making the investors and traders aware and educate them about the same is critical. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is currently being reviewed and will be tabled and discussed sooner in Parliament. The bill is expected to be passed soon as it is the need of the hour. The global crypto developments are skyrocketing and with the open support of big capitalists like Elon Musk, the number of traders and investors rapidly increasing. RBI has recently banned the purchase of cryptocurrencies through Indian Banking Channels but, seeing the global involvement in the blockchain system, it should instead seize this opportunity to empower itself and regulate cryptocurrencies. The delay in the proper regulation may give rise to investors and traders finding loopholes in the system and mining a scam instead of cryptocurrencies.

India has previously witnessed many scams which ultimately pointed out the incapability of the Government to regulate the system, be it Banking or the stock market. The loopholes need to be tightened up as they serve as a fresh opportunity to create wealth illegally. A ban on this might stop India from being a global leader in cryptocurrencies as India has the ‘at par’ capacity of investments that are required to meet the key objectives.