Long-Term Cryptocurrency in India: Huge Potential, Risks Remain

The cryptocurrency market in India is facing significant opportunities and challenges in the long term following a recent hearing at the Supreme Court. Judge Surya Kant criticized the government for imposing a 30% tax on crypto but lacking a clear legal framework, warning that crypto could create a "parallel economy," threatening national financial stability. He called for regulations, as taxing implies the government has "recognized" this asset.

The Deputy Attorney General stated that the government will reconsider, opening up hopes for a transparent legal framework. With Bitcoin (104,000 USD) and Ethereum (2,600 USD) growing, along with crypto fund inflows reaching 3.4 billion USD last week, India—a potential market with a large population—could become a crypto hub if regulations are favorable. In 5-10 years, a clear legal framework could attract institutional capital and drive technological innovation.

However, risks still exist. Concerns about illegal activities and outdated views, such as a lawyer suggesting Bitcoin was created by "a Japanese person using a pseudonym," indicate limited understanding. If not managed well, crypto could be abused, causing instability. Investors need to closely monitor to balance opportunities and risks.

Risk warning: Investing in crypto carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.