Misleading Crypto-Advertisements are a Major Problem, Warn Private Banks in India
If you were to tune in on the crypto-news from 2020 surrounding India, the only thing you would see would be that India was against cryptocurrencies. You would witness a similar kind of behavior from the government and regulators of India if it was the year 2019.
However, the situation in India has changed drastically India starting in the year 2021. The country has now started growing flexible towards cryptocurrencies but it is still very cautious about their adoption. The government of India is currently looking forward to coming up with regulations surrounding cryptocurrencies before it adopts them.
There was a time when the government of India wouldn’t even talk about cryptocurrencies in the parliament. The government did this in 2020 despite claiming several times that it was going to ban cryptocurrencies.
However, a week, it was the Prime Minister of India “Narendra Modi” who himself talked about the risks involving cryptocurrencies. He even talked about how the country needs to work on a firm and stable regulatory framework that needs to be built around the crypto-space.
He talked about the severity and the damage the cryptocurrencies can cause if they are adopted without any regulatory framework in place. Even the Reserve Bank of India (RBI) which once opposed cryptocurrencies on an extremely large scale is leaning towards them.
Just recently, the RBI announced that it was working on the development of a regulatory framework for cryptocurrencies.
This goes to show that the country is now gaining in on the adoption of cryptocurrencies. Even major cryptocurrencies such as Binance and Coinbase have opened up their subsidiaries in India. These exchanges are aiming to benefit from the growing crypto market in the country.
However, as the user following continues to grow in the country, the finances and investments of people will definitely be impacted. After the government, the sector that is going to take the most amount of pressure is the traditional financial sector.
It is possible that the people in India will start moving towards cryptocurrencies and the traditional financial sector will be sidelined. However, there is also another major concern that may soon materialize, and the entire country may get impacted by it.
India is currently considered to be one of the major hubs for technological advancements and most importantly, the IT sector. However, the technology and knowledge are also being used by the Indians for running several sophisticated scams.
This is the reason why the private banks in India have started warning their customers/clients about fake cryptocurrencies and advertisements for cryptocurrencies. According to the private banks, such advertisements are misleading and can result in people losing their funds and savings.