At the end of the day, the news of a cryptocurrency ban in India is hitting the market hard, and for good reason. Well, for a couple of good reasons. Here’s what’s happening:
Proof That Regulators Will Ban – The first big issue here is that the ban on cryptocurrencies is proof of a theory that many have had for some time now. The theory is simple. As cryptocurrencies grow, governments will rush to regulate them. However, because of the decentralized nature of cryptocurrencies, it’s nearly impossible to move forward with traditional regulation. This will prove to be a challenge for many regulatory authorities, and if this challenge continues for too long, countries will start to ban the use of cryptocurrencies altogether. With the fact that a ban on crypto-assets will be placed in India, this is no longer a theory, it’s a fact!
India Is An Important Audience For Many Cryptocurrencies – India is a key market for cryptocurrencies like Bitcoin and Ripple. With a pretty extensive population and a strong uptake of cryptocurrencies among Indian investors, cryptocurrency miners, businesses, and consumers, the loss of India is a major hit to altcoins across the board.
The reality is that cryptocurrencies are not only losing a key audience due to the crypto-asset ban in India, but this could prove to become a domino effect. If the ban works out well with regard to achieving the goals of Indian regulators, we could see more bans around the world. In fact, many in the social space are already expecting China to be the next region to follow suit. If this were to happen, it would be a massive blow to the sector as a whole.
What To Watch For Ahead
Moving forward, cryptocurrencies have a big hurdle to get over when it comes to global regulatory interference. This is going to be the primary topic discussed in most conversations surrounding BTC, XRP, ETH, LTC and just about any other cryptocurrency. So, keep your eyes peeled. In particular, watch for news out of China, South Korea, and others that have already expressed concern surrounding the growth of crypto-assets.