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Is cryptocurrency ban in India? When India’s CryptoCurrency Market crashed, look at the slump Bitcoin down by 17 percent etherium, crashed by 15%, tether fell close to 18 percent, Dogecoin and Shiba Inu, 20% each. And as these big ones stumbled, others followed suit Cardano, Ripple, Polkadot, USD coins, Stellar, they all fell by an average of 10% or more; there was a massive sell-off.
What triggered this crash?
India’s proposed cryptocurrency bill, a bill that has shaken up the country. Even before it is put up a discussion, forget being passed. Again, the question is why and the answer is this, and there’s a lot of uncertainty around this proposed law, many unknowns, and many doubts and concerns. So we’re going to try and answer some of these questions and separate fact from fiction. We’ll start with the bill itself. What is it called? The cryptocurrency Regulation, of official digital currency, bill 2021.
By the way, this bill was listed for discussion in the budget session that was in February. The government never got around to presenting it in Parliament. What does that tell you? That just because something is listed in the Parliament’s agenda, that does not necessarily mean that it will see the light of the day. Well, in the winter session, 26 bills have been listed for discussion in India. Considering how dysfunctional Parliament proceedings have been of late, how beautifully they have been held to Ransom by political parties.
How will it impact those of you who invested in Crypto?
It is anybody’s guess if this bill will get passed, but if it does, how will it impact those of you who invested in Crypto?
Will It regulate cryptocurrency in India or Ban it all together. Again, there’s no Clarity. The government says the aim is to regulate cryptocurrency, but the statement Edition tells a different story. It says that the proposed law, and I’m quoting this is what the agenda item says.
The proposal seeks to prohibit all kinds of cryptocurrencies in India while allowing for certain exceptions.
What does that even mean?
It also says that the bill aims to create and facilitate a framework for creating the official digital currency to be issued by the Reserve Bank of India.
How do we define what is private Cryptocurrency?
How do we distinguish it from what the public wants? That’s another grey area and legal turns. Anything not issued by a government or Sovereign can classify as a private cryptocurrency. But if we speak practically, aren’t all cryptocurrencies public,
It’s a question that many are asking. So we’re going to try and understand the difference according to NASDAQ, public cryptocurrencies, one that operates an open blockchain with Ledger’s available for every user. The transactions are linkable; they are traceable through one network. That’s public. Bitcoin, Bitcoin, and ethereum. These are classic examples. On the other hand, the private cryptocurrency is one where the ledger or transaction information is blurred.
And this is done to offer privacy to users. The transactions are difficult to trace at their routed, through multiple Networks. Were Zcash and dash are some good examples that said it’s hard to comprehend what the government means when it says private cryptocurrency. We don’t know if it’s trying to draw the same technical distinction that I just explained for all; we know any cryptocurrency that the government does not the issue can be classified as private.
Just now, I explained that the bill aims to create a facilitative framework for creating the official digital currency to be issued by the Reserve Bank of India. The bill will create one server virtual currency. A digital rupee of the sort that could render other cryptocurrencies useless. Again it’s a possibility, not a certainty. The government will have to clear the air on this, explain in clear terms what it intends to do, and tell investors if they will be allowed a window to liquidate their Holdings.
How many Indians have invested in cryptocurrency?
Why is this important? Do you know how many Indians have invested in cryptocurrency? 10 Crore, That’s 100 million people more Indians have put their money in Crypto than the stock market in India. More Indians Put their money in Crypto than Americans. We’re looking at massive volumes here. How much money have They invested? Ten billion US Dollars, that’s one estimate. The exact date may vary. Which cryptocurrency has the invested in the most?
Bitcoin is the highest valued cryptocurrency in India. Who exactly are these investors? The Youth of India, Millennials. The average age of a crypto investor in India is around 24. For our Young Guns are driving The crypto craze. They rely on it as a side hustle, which means earning some fast money or simply due to FOMO, which is the fear of missing out.
Indian Government views on cryptocurrency
The govt. Says, All of these people could be misled to non-transparent advertising ads try to position cryptocurrency as the shortest, quickest, and surest way to become rich but offer no returns if you lose your money. During the recent T20 World Cup. We all were bombarded with advertisements for cryptocurrencies.
I’m sure you saw them. It became a household word; many Indians invested their money with little knowledge of how it works. They saw it as quick money. The government says that this could risk The money of gullible Indians who don’t know how Crypto works, And the absence of regulation, they will have no means to recover their money.
The government also suspects. The anonymous nature of these transfers could become a term for drug traffickers, smugglers, and money launderers. This is not a debate that is unique to India. This is a debate that is filled out in several countries. Many governments around the world have banned, Crypto altogether countries, like China, Nepal, Vietnam, Colombia, Russia, Ecuador, Bolivia,
Egypt, Indonesia, turkey. They all either bank cryptocurrencies or restrict their use. Then we have countries that have launched their cryptocurrencies, like Ecuador, Senegal. Singapore, Tunisia. And soon, they’ll be joined by other countries like Estonia, Japan, Russia, and Sweden. These countries are in the process of launching their national cryptocurrency.
India is the latest entrant to this club. This club of Nations is trying to regulate what looks like the future of money. The move is long overdue. There must be regulations to safeguard the interests of investors and an end to misleading advertising.