Global Trends Back Up India's Stance on Cryptocurrency

The negative experiences of various Crypto funds, the most recent being Singapore's Three Arrows crypto fund, have quickly vindicated India's conservative position on not encouraging Crypto Currency. According to experts, India correctly predicted the adverse economic headwinds, potentially saving a large number of people from financial ruin.

Various media outlets reported last week that Singapore-based crypto hedge fund Three Arrows Capital (3AC) was in trouble. It is one of the high-profile crypto investment firms that has recently encountered difficulties as the crypto market valuation has plummeted. It has dropped by about a third since its peak in November of last year.

In the latest sign of the crypto market's impact, Bloomberg and Reuters reported that 3AC has gone into liquidation after failing to make payments on a loan of 15,250 bitcoin (approximately USD324 million) and USD350 million in USDC, a stablecoin.

According to Reuters, a court in the British Virgin Islands, where 3AC's fund is incorporated, issued the liquidation order on June 27. If a company is deemed insolvent because it cannot pay its debts, the Commercial Court there orders its liquidation. Companies that voluntarily liquidate are less common.