India today has over 10 crore cryptocurrency investors, who have collectively poured in over $10 billion dollars, according to broker discovery and comparison platform BrokerChooser.
“The existing traders and investors will have to book losses, opening the floodgates for huge financial claims and disputes.
But the cryptocurrencies are global and will not be affected by any particular country taking a decision.
Banning cryptocurrencies would be a regressive step for any government,” asserted Edul Patel, CEO and co-founder of Mudrex, a global crypto investment platform.
When China’s top regulators banned crypto trading, there was an immediate change in coin prices, wiping at least $400 billion off the market.
However, India’s share in the trading business is much smaller compared to China.
Interestingly, crypto exchanges did not witness any significant dip in trading activity during the 2017 ban by the Reserve Bank of India .
“In the case of a blanket ban, there will be a time period given to all investors to withdraw the funds.