The Indian cryptocurrency market has grown enormously in the last year. India is the largest cryptocurrency market in Central and Southern Asia and Oceania (CSAO) and has the second-highest crypto adoption rate in CSAO, behind only Vietnam. India, which has remained on the fence towards crypto assets, seems to be taking steps to regulate rather than ban cryptocurrencies. A ban on all cryptocurrencies – much like China just implemented – had been floated back in 2019, so this decision will be received positively.
This famously happened in recent weeks. A company named CryptoEats managed to scam investors out of approximately $500,000.
One of the main concerns regulators have relates to initial coin offering (ICO) scams and rug pull scams. These involve people investing in a coin, but when the coin opens the money is taken and the website disappears.
Discussing the threat of ICO scams to retail investors, a Finance Ministry official said that “what should not happen tomorrow is that if I start a personal digital currency, and after good marketing everybody buys it and once it has appreciated, I run away since I am a private player! Everybody has actually bought that currency by using other assets. Government needs to look at regulation in order to avoid the above”.
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- India smoothing the regulatory framework for cryptocurrencies
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