Back to the list

India considers banning domestic exchanges - reports

02 November 2017 21:00, UTC

As reported by multiple media outlets, the Indian government might be considering banning cryptocurrency exchanges operating within the borders of this country. No mentions of foreign exchanges were made, so the majority of experts tells that the Indian citizens will just move funds to organizations operating outside India.

Still, this ban will considerably harm the market of India if implemented. As most economic experts suggest, the regulative approach towards innovative markets brings tax revenue, while total ban creates missed profits.

Analogies with the ban in China naturally come into mind, and in that case we didn’t see China benefitting from the ban very much. Quite oppositely, the neighbor rival state, Japan, has seen an increase of new businesses related to cryptocurrency - these were the companies that escaped the new strict policy of Beijing. Something very similar is bound to happen with countries neighbouring India if the members of the government of this country do not change their mind.

Reports from July suggest that Indian citizens know about cryptocurrency much better than Russians, which indicates the good state of the domestic exchange market that might collapse soon. Other previous messages and reports from India imply that the government of India considered strict regulation of the market instead of banning one of its integral parts.