Regulation can greatly influence any sector. The role of regulation in the crypto trading sector is very important which I explained to you a bit in the previous post. A simple decision by a court or a regulatory control authority can bring about a massive change for the entire country. In today's discussion, I will discuss the same but I will explain here the real impact of some regulations especially I will highlight some cases from India.
The journey with crypto regulation in many countries has been a rollercoaster. Back in 2018, the Reserve Bank of India (RBI) issued a circular banning banks from dealing with or providing services to individuals or businesses involved in cryptos. This move was seen as a step to protect the Indian economy from the risks associated with unregulated digital currencies. This ban created a lot of uncertainty in the market. In this situation, several crypto exchanges shut down or moved their operations overseas. An example of Zebpay is even more remarkable. It was a leading crypto exchange at the time.
Following the RBI’s ban, Zebpay had to shut down its exchange services in India. The main reason is the lack of banking support as the primary reason. This left many Indian crypto traders in a lurch. They suddenly found themselves unable to trade their assets on a trusted platform. This ban didn’t last long. In 2020, the Supreme Court of India overturned the RBI’s circular. Banks were once again providing services to crypto businesses. This decision was a significant win for the crypto community in India and paved the way for the resurgence of crypto trading in the country. Exchanges like Zebpay, WazirX, and CoinDCX saw a massive influx of users post the verdict. This decision clearly shows the importance of a stable regulatory environment for the growth of the crypto market.
Hope you get some idea of the whole thing through the examples and understand the relationship between these two things significantly. In the next post, I will share with you some new things related to this topic of the influence of regulation in crypto trading.
~ Regards,
VEIGO (Community Mod)
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