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Cryptocurrency Set to Boost GDP

Indian regulators should work hand in hand with the exchanges so that India don't miss out!

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Indian Blockchain Boom set to boost GDP! while the world suffers from unforeseen Recession due to coronavirus!

Innovation halted and the tech giants like Apple & Microsoft pulling manufacturing out of Chinese markets but benefiting India indirectly, apart from accidental opportunity hitting India financial ecosystem, an unexpected phenomenal win over RBI (Reserve Bank of India) banking ban on the crypto industry was welcomed on 4th March 2020.

Crypto Industry which has a total market cap of $261.14 Billion at the time of writing. With a daily volume of 135 Billion USD approx.…. the annual numbers go in trillions…. Just as a comparison India’s 2019 GDP in the Third Quarter was $579 million and the total wealth of India is 12.6 Trillion, Ranking 5th in the world.

Indian Economy can now see a huge potential, as this move of lifting the ban will bring many Tech Giants to Indian markets flooding the financial system with Foreign reserves, innovations, development, jobs, and advancement in technology. This may give a tremendous pump to India’s GDP.

As previously many crypto-related projects, including blockchain applications, coin creations, exchange platforms, etc. were sourced from India but were not able to capitalize on the global investments within this industry, annually losing trillions in trading volumes.

Before and after the effects of Banking Ban!

Before

Black money and illicit activities that were going under the table via Ponzi style P2P (peer to peer) methodology used by several existing exchanges compromising AML (anti-money laundering) laws, many world governments consider P2P as illegal and dangerous dark web money laundering services.

After

Now that the ban is lifted, existing exchanges will be able to facilitate banking deposits and withdrawals within the platform.

Required

Regulators should now do quarterly audits and compliance checks of these exchanges, requiring them to provide information of large sums deposited, withdrawn and held. At the same, any large or suspicious transactions should be reported to the authorities.

Coinbase, the world's biggest crypto exchange based in the USA, has strict compliances and checks in place. Including annual reporting of earnings to the Tax departments.

Indian regulators should work hand in hand with the exchanges so that India don't miss out!

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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cryptocurrency

Manpreet Singh

The author is CEO Armoney.com

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