{Read Now} Cryptocurrency Ban in India? Future of Crypto Market in India

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Cryptocurrency Ban in India: India, which has experienced a surge in investor interest in cryptocurrency and many investors already have, continues to warn residents against investing in cryptocurrencies, citing severe financial risks as a reason. After the government stated on Tuesday that it would introduce a new financial regulation bill, India is on pace to prohibit all except a few private cryptocurrencies and future of crypto market in India in dark for all the private cryptocurrencies operating in India.

Cryptocurrency Ban in india?

Cryptocurrency Ban In India
Cryptocurrency Ban In India?

The ‘Cryptocurrency and Regulation of Official Digital Currency’ bill establishes the basis for the Reserve Bank of India to issue an official digital currency and makes private cryptocurrencies such as Bitcoin and Ethereum illegal.

The Reserve Bank of India has stated on several occasions that cryptocurrencies such as BitCoin, Ethereum, and Dogecoin, among others, pose a risk to financial stability. It has also questioned its claims of market value, urging investors not to be “enticed” by the promises of cryptocurrencies’ returns. However, in March of this year, the Supreme Court struck down an RBI circular forbidding banks and businesses regulated by it from providing services related to virtual currencies, which was issued on April 6, 2018.

Prime Minister Narendra Modi made his first public comments on the matter earlier this month, saying that all democratic nations must work together to guarantee that cryptocurrency “does not getting into the black market, which can corrupt our youth.”

According to a parliament report, the law, which will be presented to parliament in the next session, will allow exceptions to encourage the inherent blockchain technology.

Earlier this year, the government proposed making crypto-assets unlawful to own, issue, mine, trade, and transfer.

Cryptocurrency Ban In India? Cryptocurrency worth in India

Cryptocurrency Ban In India: BTC, ETH, DOGE, LRC, AVAX are among popular types cryptocurrency doing business in India. Apart from that there are many more cryptocurrencies exists in worldwide market including Indian market. It has been estimated that despite recent dips, the cryptocurrency markets in India have reached market capitalization above $200 million.

Overview of Cryptocurrency Market Worth       

Global Crypto Market Worth$2 Trillion (Approx.)
Indian Crypto Market Work$241 Million (Approx.)

Why Private Cryptocurrencies should banned in India? ( Cryptocurrency Ban In India )

  1. Because there is no central registry, losing a digital wallet could result in the loss of Virtual Currency for good. Because of the existence of digital wallets, they are more vulnerable to fraudulent methods such as theft, hacking, and malware.
  2. Because it is based on the decentralization concept, no single authority has a say in it, hence there is no recourse in the event of a disagreement.
  3. They are extremely volatile because to the lack of any form of asset backing.
  4. Because the status of Virtual Currency is unclear, it entails financial and legal risk.
  5. It has the potential to violate anti-money laundering and anti-terrorist financing regulations because of its anonymous nature

What is the future of India’s Cryptocurrency Market? Crypto Ban in India?

To answer this question, we don’t even need to consult the Crystal Ball. Even if the restriction on the crypto-currency market in India has been lifted, the future of the industry is not bright. The Indian government has not issued any regulatory guidelines in this area.

Nobody was encouraged by the government to enter the cryptocurrency sector. Unocoin’s co-founder was detained for unlawfully running the country’s first Bitcoin ATM at a Bangalore mall. This demonstrates that the Cryptocurrency market’s future is uncertain.

How Cryptocurrency evolved in India?

We need to look at how we got here to understand the contemporary cryptocurrency debate in India.

Year 2008: Satoshi Nakamoto, a pseudonymous creator, produced a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”

Year 2010: The first Bitcoin transaction occurs, with a consumer exchanging 10,000 Bitcoin for two pizzas. For the first time, the cryptocurrency has a monetary worth.

Year 2011: Other cryptocurrencies, such as Litecoin, Namecoin, and Swiftcoin, began to appear in 2011.

Year 2012 to 2017: Cryptocurrencies have steadily gained traction from 2012 to 2017. Bitcoin’s price has risen from roughly $5 at the start of 2012 to nearly $1,000 at the end of 2017.

Government’s approach towards Cryptocurrency Market

Government wants to Cryptocurrency Ban In India, The Indian government is anticipated to ban all “privatecryptocurrency in the near future, while also announcing a sovereign digital currency “soon.” This is despite several industry appeals and a failed attempt by the Reserve Bank of India (RBI) to impose a ban in 2018 by prohibiting banks from dealing with cryptocurrency. Last March, the Supreme Court found that the restriction was unconstitutional but now it is almost confirmed that government is going to introduce a new bill to ban private cryptocurrencies operating in India and RBI may introduce cryptocurrency which will have legal tender in India.

RBI deputy governor T Rabi Sankar recently stated that A CBDC is a digital form of legal money issued by a central bank. It works in the same way as fiat money and can be traded in a one-to-one ratio for fiat money. CBDC is a digital or virtual currency, but it differs from the private virtual currencies that have proliferated in the recent decade. Private digital currencies are diametrically opposed to the traditional understanding of money.

To know more about Cryptocurrency Ban In India Law , go through

RBI’s statement: https://www.rbi.org.in/

Indian Govt.’s view on Cryptocurrency: https://finmin.nic.in/

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