One of the major controversies in the crypto space is India’s crypto ban. It is expected that the ban will be very strict and even criminalize the possession and mining of cryptocurrency. And one of the most important things to note among this is the fact that the softer laws of western countries will not influence this ban. India’s crypto ban might not consider the fact that the US and many other countries tax crypto transactions like anything else. And this ban might also trigger the already bearish market of Bitcoin.
India’s crypto ban
Bitcoin’s price boom in 2017 was the first time when cryptocurrency came into the limelight. And after that, it was more of a silent path till 2020. When the lockdown happened, and the pandemic took the entire world by surprise, every other asset class lost value. During this time, the interest in cryptocurrencies surged, and Bitcoin saw a huge boost. The growth in the prices of the cryptocurreny resulted in the government have a close look at the same. And eventually, when the interest in these currencies rose too much, India planned to ban them because of several reasons.
Reports suggest that RBI could be planning to launch its own digital coin that will be regulated. This will address the concerns of the illegal use of cryptocurreny and will also take advantage of blockchain technology. But is what we want? I don’t think so. And the fact that the government could just turn a cold eye on private cryptocurrencies is shocking.
What would be a better decision?
The growing interest of institutions and banks in Bitcoin is a clear reason why it should not be banned. Rather like other countries, the government could regulate cryptocurrency. Indian exchanges are already urging the government to bring in laws and stronger tax policies but not ban the cryptocurreny. In fact, many exchanges are even saying that Bitcoin could instead be placed in the highest tax bracket. This will not only keep the investors happy but bring in a lot of tax revenue for the government.
But we cannot be entirely sure whether this will be followed. Because still many think that banning cryptocurreny is a good thing. Rakesh JhunJhunwala, one of the biggest names in the investing world of India, said that BTC should be banned. This is because the right to release a curreny should be only in the hands of the government. He even said that if it is available for $5, he won’t buy it. Well, we have to wait for a little more for the final decision of the government as the Finance minister said that the bill is almost ready.
What are your thoughts on India’s crypto ban situation? And are you skeptical that it would go through? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.