Puzzle Solved on CryptoGame: III-Yester fights and rules on crypto in India
Crypto Game 3.0:
In the earlier blog, we tried to cover the situation of Cryptocurrencies in major Countries of the world and how they are utilizing them. Moreover, the use of virtual currencies whether as value, commodities, or exchange system.
In the following part of the blog, we will cover the earlier scenario of virtual currencies in India, and various official rulings.
Just at the beginning of the newly emerged currency in the digital world, speculations began over its ulterior motive. Many claimed that bitcoins were being used on the dark web to pay for guns and drugs among quite a lot else. But no proof for the same was found.
During the five year phase, between 2012-2017, Cryptocurrencies slowly gained traction, its price value was also increased from around $5 at the start of 2012 to almost $1,000 at the end of 2017.
Not only this, but this period also saw cryptocurrency exchanges expand in India, including Zebpay, Coinsecure, Unocoin, Koinex, and Pocket Bits.
Though, RBI raised its concerns over the use of Cryptocurrencies, with the following statements:
Virtual currencies are not backed by a central bank.
Their value isn’t underpinned by an asset and thus a matter of speculation.
After the demonetization in 2016, crypto boomed as a consequence. The insistence on digital payments led to a search for alternatives to traditional online banking and drove tech-savvy customers to cryptocurrency exchanges.
Petitions were also filed before the Supreme Court of India, asking for the ban on the use of cryptocurrencies and also for regulation of the same. As a result, RBI and the Ministry of Finance made a committee to study issues and made recommendations. In 2018, RBI declared a ban on virtual currencies by all banks and payment system providers.
Last year, in march 2020, The Supreme Court of India lifted the ban on cryptocurrencies and declared it unconstitutional.
This ultimately opened the trading of virtual currencies in India. The price of Bitcoin jumps more than 700% between April 2020 and February 2021. However, there are still rumors of an impending ban.
The upcoming blog will cover the Crypto Game 4.0: Upshot of crypto today, and it's future in India.