The absence of a law to regulate cryptocurrency trading harms the crypto markets.. India is an example
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Answer The absence of a law to regulate cryptocurrency trading harms the crypto markets.. India is an example
Earlier this month, the Securities and Exchange Commission of India (SEBI) dispatched government officials to Japan and Switzerland to better understand regulations around bitcoin and other cryptocurrencies ahead of a Supreme Court hearing on the ban on trial trading imposed by the country’s central bank.
At the time, many investors in India were optimistic about the intentions of the Securities and Exchange Commission in India as they wanted to gain a deeper understanding and better knowledge of the global standard for regulating cryptocurrency through close cooperation with officials in Japan as a cryptocurrency exchange. In the world.
However, it is believed that it is too late for regulators in India in their quest to rescue the local currency exchange market.Read:Italian police accuse the founder of a cryptocurrency exchange of hacking fraud
The platform “Zipay” to buy and sell bitcoin prepares to withdraw
On September 28, ZiPay officially announced the suspension of its operations and the closure of its services in India, as it was unable to obtain any banking service from commercial banks and financial institutions in the country after the blanket ban imposed by the Central Bank.
“Restrictions on bank accounts have hampered our activities, and hampered our ability to do business meaningfully. At this point, we were unable to find a reasonable way to conduct our cryptocurrency trading business,” according to the Zipay team.
Zipay’s decision to pull out of India and discontinue its services there is monumental, not only due to its status as one of the three most important and trusted Bitcoin exchanges in the region but its patience in dealing with impractical policies implemented by local financial authorities.
Over the past few years, ZiPay, as a leading Bitcoin exchange in India, has set industry standards including Know Your Customer (KYC) and Anti-Money Laundering (AML) systems to ensure that the trades are able to provide relevant information to governments in the absence of Regulations governing Indian financial policy.Read:After the adoption of the Polygon blockchain from the Instagram platform … the price of the digital currency MATIC increased
Sandeep Goenka, one of the founders of Zebpay, which has millions of users of the mobile application, stated last February that the company wholeheartedly welcomes the government’s desire to eliminate the possibility of using exchanges and cryptocurrencies such as Bitcoin and Ethereum, for money laundering by criminal organizations. And that the local trading platforms will implement the necessary solutions to help the government.
Goenca said at the time:
“Every citizen and worker of this country must play their part in eliminating the financing of illicit activities regardless of whether this financing was done using cash, cryptocurrency, gold or any other medium. We welcome this move by the government and we want to wholeheartedly support the government in this step. We encourage the government to work with our members, as we are committed to detecting, reporting and removing suspicious transactions in the same way that other organizations do.”
Although this requires additional resources and capital to achieve development processes that integrate strict KYC and AML regulations to create a seamless process for governments to handle suspicious transactions from unknown sources. Zipay, Unicoin, and other leading cryptocurrency exchanges in India have voluntarily combined these solutions to set disciplined standards in the local cryptocurrency market.Read:Will the “Three Arrows Capital” hedge fund that manages billions of dollars in crypto collapse? Here’s what’s going on
However, ZiPay, who had been supportive of the government’s agenda, had to close its business, as banks refused to trade, and any service for crypto-related businesses was canceled.
India will be isolated
The position of the Government of India in dealing with cryptocurrencies and its delay in regulating the trading market is quite clear. He believes that once the local cryptocurrency market is regulated, companies will initiate and the cryptocurrency market in India will thrive.
Malta, Switzerland, Busan, Seoul, Japan and France have all focused on appropriate regulation of startups using cryptocurrency and blockchain in order to attract pioneering projects. Once the local platforms withdraw from the Indian market, it will be difficult for the country to revitalize the local cryptocurrency market and projects based on blockchain technology. It may take years if the government continues its approach of pressuring the incumbent companies until the local industry recovers.
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