India has proposed legislation that would ban its citizens from performing cryptocurrency transactions. Not only that, but this legislation also means anyone who breaks the law will be subject to arrest. India isn’t the first country to aggressively ban crypto transactions, this news comes just after China banned crypto altogether. Many crypto enthusiasts are sad to see countries view crypto as a threat to their economy. Especially after other nations such as El Salvador have effectively leveraged the potential of crypto.
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Not Just Crypto
India’s plan to ban crypto doesn’t end there, if no blockchain related transactions are allowed whatsoever. This will cause NFTs to also take a major hit, likely eliminating them from India altogether. No, it doesn’t stop there, future blockchain technologies will automatically be banished as well. In a field as new as crypto, this means India will be handicapped from future blockchain innovations, which could begin to hurt the nation’s economy.
Ripple Effect
Just because you don’t live in India, doesn’t mean you can rest assured. It is estimated that there are 15–20 million crypto investors in India. Another way to put it, $6 billion USD worth of crypto is currently held by investors from India. If this large portion of the crypto market is sold quickly by fearful Indian investors, the crypto market could crash entirely. As the crypto market begins to tank, many investors will likely sell out of panic as well. Resulting in a major crash, which could begin to impact the economies of other countries.
Don’t Panic… Yet
Although this all sounds very scary, the legislation is not in place yet. So for now, everyone’s crypto is safe. It is not uncommon for legislation to take many months before it is officially enacted. Perhaps this concern isn’t as urgent as it appears to be, which isn’t to say things could change in the future. But as of right now, keep holding, and buy those dips!
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