India is the world’s largest remittance market, resulting in a turnover of USD 65.4 billion so far in 2017 only followed by China and Philippines. If India government regulates Bitcoin, it will only be profitable if analysts and pundits are to be believed.
Presently Bitcoin is gradually being adopted in the major global economies including the US, Japan, South Korea, and Russia following the frames other governments have imposed to legalise Bitcoin. It is now becoming a mandate for any government to follow the same framework or there is a considerable chance of losing out on potential market revenue as the banning would lead a government or an economy to be separated and outdated from the global bitcoin market. If no cryptocurrency investor or businesses are allowed, it will prove very harmful to the economy. Hence, thinking of the long term, it is most likely that the Indian government will regulate its bitcoin markets.
Earlier this week, it was reported that the Supreme Court of India had requested the central bank and the authorities to provide clarity on the regulatory framework surrounding bitcoin and the cryptocurrency market. The highest court in the country has issued notices to the Finance, Law and Justice and Information Technology ministries. Alongside the central bank (Reserve Bank of India) and market regulator (Securities and Exchange Board of India), demanding they respond to a petition seeking clarity on bitcoin’s legality in the country.
Since May 2017, the Indian government and its cryptocurrency focused task force delve extensively into the formation of necessary regulatory frameworks to provide a better and a more robust ecosystem for both businesses and investors.
However, for many months, the Indian government not offered any clarity apart from the fact that bitcoin and cryptocurrencies are not illegal in the country. As such, India’s major exchanges and trading platforms such as ZebPay and Coinsecure have continued to operate, serving Indian users and processing payments for general consumers.
According to World Bank, an international financial institution that provides loans to countries of the world for capital program, India remains as the most significant remittance market in the world, with more than $70 billion in annual payments received by Indian employees or expat workers.
If India regulates bitcoin and legalises the currency, its remittance industry will be quick to adopt bitcoin, growing the mainstream adoption of the digital money in the region.