cryptoAre Indian Investors Safe If Government Bans Cryptos?

It will be a huge blow to crypto investors in India if the government enforces a sudden ban on crypto trading, although such an abrupt move is doubtful.

The cryptocurrency market enjoyed a bull run last year, driven by the rapid emergence of smart contracts and NFTs and the hype surrounding its jaw-dropping returns that drew scores of new investors to the world of digital assets.

However, amid a topsy-turvy crypto market this year, governments around the world have begun tightening their grip on the industry, fearing a major meltdown that could leave investors high and dry and vulnerable to frauds and scams.

A report published by the crypto exchange Gemini showed that 54 per cent of Indian investors joined the crypto bandwagon in 2021, and 40 per cent of Indian investors plan to purchase cryptos as a hedge against inflation.

Although cryptos still seemed a lucrative investment, the market has fallen sharply this year, with exchanges like Coinbase, Celsius, and Vauld facing bankruptcy and legal scrutiny even as they halt withdrawals to minimize losses.