In India, the Enforcement Directorate is looking into numerous cryptocurrency exchanges as the government is cracking down on the industry (ED).
As a result, India’s finance minister has issued a warning to anyone considering investing in digital assets. While that is happening, authorities are still looking into crypto service providers’ actions. According to reports, the ED has made a number of arrests and frozen the assets of some businesses.
The Minister of Finance Issues Cautionary Note on Crypto Investing
According to reports, Finance Minister Nirmala Sitharaman has cautioned investors against the risks associated with crypto assets. She maintains that digital currencies cannot replace government-issued fiat money.
She did point out, however, that government agencies have already issued warnings about the dangers involved. In light of this, she thinks it’s a good idea to warn the general public about the risks associated with investing in cryptocurrency.
A new set of regulations designed to safeguard crypto investors was also recently announced by the finance minister.
In the meantime, the finance minister’s statement followed ED investigations into numerous cryptocurrency exchanges. Moreover, the agency is looking into allegations of money laundering involving exchanges and other intermediaries dealing with digital assets.
Vauld refuted the regulator’s claim, however, by showing that it had met all government standards. It went on to say that in July it received a summons from the authorities requiring it to turn over the required information and documents, and that it did so.
A customer whose account the company had temporarily disabled was the target of a freeze order, the company said. Therefore, the crypto lender disagrees with the government’s order to freeze its assets despite having complied with all local regulations.
Bitcoin’s Surge in India
After the pandemic of 2020, the world was changed forever. The lockdown has had a telling effect on the global economy due to the disruption it has caused. People are looking for new places to put their money after witnessing the precipitous decline in value of a wide variety of commodities and assets.
Therefore, digital assets are the preferred investment vehicle for most financiers. People in India are attracted to virtual tokens because they believe the cryptocurrency market is relatively safe from the pandemic’s devastating effects on the economy.
The unprecedented growth in user base from March 2020’s 6 million to March 2022’s nearly 90 million is particularly noteworthy. As experts’ estimates do not account for people who have accessed foreign crypto platforms via VPN, the true number of people who have done so may be higher. There are now between 15 and 20 million cryptocurrency investors in the country, with a total of over $5.3 billion in digital assets.
The young population in India is the driving force behind the development of the cryptocurrency market.
The success of homegrown crypto companies like Wazirx and CoinDXC has encouraged many international firms to set up shop in India and invest in its domestic exchanges. Consequently, India is now the world’s second-fastest adopting nation of digital currencies.
The cryptocurrency market in India expanded by 641% between July 2020 and June 2021.