The cryptocurrency market enjoyed a bull run last year, driven by the rapid emergence of smart contracts and NFTs and the hype surrounding its jaw-dropping returns that drew scores of new investors to the world of digital assets.
However, amid a topsy-turvy crypto market this year, governments around the world have begun tightening their grip on the industry, fearing a major meltdown that could leave investors high and dry and vulnerable to frauds and scams.
A report published by the crypto exchange Gemini showed that 54 per cent of Indian investors joined the crypto bandwagon in 2021, and 40 per cent of Indian investors plan to purchase cryptos as a hedge against inflation.
Although cryptos still seemed a lucrative investment, the market has fallen sharply this year, with exchanges like Coinbase, Celsius, and Vauld facing bankruptcy and legal scrutiny even as they halt withdrawals to minimize losses.
What Happens If The Government Bans cryptocurrency?
P.M. Mishra, the founder of Finlaw, a law consultancy firm, said the exchange of funds between banks and cryptocurrency exchanges would cease if the government outlaws cryptocurrencies. Mishra added that “you won’t be able to purchase cryptocurrency using local cash” and “you won’t be able to cash them in.”
However, he believes the government wouldn’t take a hasty decision. Such decisions can cause panic among investors.
Mishra said it is important for the government to start…
