India has always had a rocky relationship with cryptocurrencies, but it looks like it's about to get even tougher. The latest rumors indicate that the Indian authorities, more specifically the Central Bank of India, are studying the strong possibility of banning cryptocurrencies from the country.
Indian authorities are analyzing the possibility of blocking the use of cryptocurrencies in the country, which is currently considered the second largest market on the internet.
Nirmala Sitharaman, finance minister of India, recently mentioned that the authorities are studying the possibility of blocking the use of cryptocurrencies, taking into account their impact on the local market.
Blocking cryptocurrencies in India, however, will require – according to the same source – strong international collaboration. Local authorities indicate that there is a need for the various countries where cryptocurrencies are accepted to have ways of regulating that market, or banning it altogether, for the benefit of final taxpayers.
However, regarding India, since the beginning of the year, new regulations have been applied for the use of cryptocurrencies in the country. Many banking entities are considerably limited in the use they can make of these virtual assets. Coinbase, as an example, will have blocked all transactions in India due to pressure from local authorities at the beginning of the year, and it is expected to remain so for longer.
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If this block is actually applied, there is a strong possibility that the cryptocurrency market will see even more drops in value, something that has been felt considerably by cryptocurrency investors over the last few months.
After the peaks recorded in November last year, the value of cryptocurrencies has been falling considerably in virtually all sectors, partly due to the inflation that is taking place worldwide and the uncertainty of world markets.
