Panic! Panic! in the Market again! How? Well, the Indian government is still not sure whether they out Complete Ban on Cryptocurrency in India or to regulate it with some limitations. We will discuss all the fairy tales u wanted to hear from first. So here we are! Cryptocurrencysimple.com will make you realize what’s happening between GOI and Cryptocurrency in 5 minutes of reading time!
Table of Contents
Relation between Indian Government and Cryptocurrency
First of all, there has always been a fight between crypto-currency and the Government! What are the differences between the Government and the crypto-currency market? Next, we will discuss what Narendra Modi’s government planning and rules and regulations on cryptography are. What are their problems? What are their benefits? And we will also talk about what other countries think about crypto-currency.
So let’s start! Now we will talk about the government and crypto currency’s relationship! This relationship is getting painful! That’s why you can see that the Government never openly accepts crypto-currency. This is not only for the Indian Government but for all governments around the globe! Because for a government, currency control is as essential as a bat for cricketers if you remove the Government’s control over currency! Then the Government will lose control over the economy!
The Economy! How? Because the Government will never be able to increase or decrease the money supply, as they will have no control over currency, the Government will not increase or reduce interest! Because all of that is decentralized, the Government will not track anyone and control anything. Why? Because they have no control over the currency.
And that is why! The concept of Cryptocurrency is alien to many governments, or a lot of governments are against it! Why? Because it will change the whole system of our Government, you can see yourself.
The Indian Government has been blamed so many times that our income tax department sees a cryptocurrency, trade, or any business transaction in any account! Then banks are intimidated into avoiding crypto-currency transactions and avoiding dealing with such business people in the US. They are asking if Crypto is being used for tax evasion, so you can see this relationship is so uncomfortable it is not clear!! And well-defined! It is not clear!! And well-defined!
In 2018, The RBI ordered all the banks to prevent all transactions that deal with virtual money! All banks are informed not to do so. All banks are advised not to do so because of all the minors who ended up being crypto investors, crypto exchanges, crypto users, everything related to Crypto ended! Several pleas were filed in the supreme court, but the supreme court of India declared RBI wrong in this situation. Why? As you can see, the relationship between the Government and Cryptocurrency is currently strained.
What Government is planning to do Ban on Cryptocurrency in India?
What is the current situation? News is that our prime minister, Narendra Modi Ji, himself, will chair a high-level meeting among him, RBI, the finance ministry, and the home ministry. They will discuss crypto-currency. They will discuss bitcoin. This meeting will be held in the winter session, which runs from November 29 to December 23.
Then they will pass a proper bill about crypto-currency! Why? What’s the rush? It is so because of the facts! India has the most crypto users. India has the most crypto users. In India, there are 10.7 crore crypto users. The USA is in second place, and that is 2.7 crores. Can you see the difference? So definitely India’s demand is very high, and China at third position, that is 1.74 crores, so definitely India’s demand is very high.
What is the Government concerned about? What is their problem? They believe that the crypto industry has a belief in the crypto industry. There have been attempts to mislead our youth! They overpromised our youth and showed the lack of transparent ads, which should be stopped, should be stopped. Not stopped, but it should be regulated. Not stopped, but it should be regulated.
Why is regulation so important? Why? Does the Indian Government consider it a currency? Do you consider it a currency? I don’t know! What will its capital and income tax gain be? Will cryptocurrency vendors ever are subject to GST? are so many questions, and no one has an answer.
The reason behind it is that our political leaders are completely unclear about crypto-currency! That is why there is so much confusion now, as you can see from what people say! The Government spreads rumours to justify their attitude toward Cryptocurrency., the Government says that crypto transactions are being used for terrorism and drugs, and to be honest, Yes, indeed!!
As you can see, the internet can be used for such destructive practices, so turn it off! We cannot, but we can shut down the misuse of the internet. That is why we have to shut down the misuse of technology. Accusing Crypto of such practises is too farthest, but our Government is taking strong and positive stands. Because the Government told us they do not intend to ban on Cryptocurrency in India, they want to regulate it.
Why? Because the Government is, why? Because the Government recognizes it! Crypto is creating employment, high revenue, and increasing creativity in FINTECH, and Indians are so well. So the Government doesn’t want to stop it; they want to regulate it and provide a legal framework, which I think is very good!! Which I believe to be very good!
What are the prospects of international countries on Cryptocurrency?
Now we will talk about international governments. Now I will specify pro-crypto countries and countries that are against Crypto. Firstly, the pro-crypto countries, Yes, I know some people are saying Crypto is being used for tax evasion, but the US market has its derivatives, which is a positive sign. Next is Canada, which is friendly for such a market.
Why? Although there are some credit cards and banks in which bitcoin trading is banned, according to the Canadian Government, bitcoin’s income is considered business income. That means they are providing the framework and hence making it legal.
The Australian Government does not consider it as money or foreign currency; they say it’s an asset regarded as a capital gain, which is fine. Let’s talk about the UK. The United Kingdom is an expert in Bitcoin, and they also have tax regulations for Bitcoin with proper clarification, indicating that the Government accepts bitcoin and crypto-currency.
Next, we will look at Germany, which has a proper legal framework with different tax brackets. Users have different tax brackets; the exchangers, brokers, and minors have additional taxes. So it provides a legal framework. Now, let’s look at countries that are opposed to Cryptocurrency and have banned it. China has put a complete ban on Crypto. Many of the minors are being captured and stopped. Many of the minors are being arrested and exterminated.
Bitcoin has been declared illegal in Russia! So, are there any issues with Crypto? Yes, there are.! But our Government seems to be taking a positive approach as they have realized it is a great opportunity. They are not stopping technology and rest, and we will see what happens on Hot topic ( Ban on Cryptocurrency in India )!
10 Points to know about why Government is moving to Ban on Cryptocurrency in India?
The Centre is set to introduce a bill in the winter session of Parliament to prohibit all cryptocurrencies in India, with a few exceptions, and to establish a regulatory framework for digital money issued by the Reserve Bank of India (RBI).
In the following winter session of Parliament, the Centre is expected to introduce legislation banning all cryptocurrencies in India, with a few exceptions, and create a framework to control digital money issued by the Reserve Bank of India (RBI). As a result, all major digital currencies declined by roughly 15% or more, with Bitcoin falling by around 18.53 percent, Ethereum by 15.58 percent, and Tether by 18.29 percent. most of the people thought GOI is planning to put Ban on Cryptocurrency in India
Here’s your list of cheatsheets to know the whole story about the ban on Cryptocurrency in India.
- The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is slated to be introduced in the Lok Sabha during the winter session, which begins November 29.
- “Create a facilitative framework for forming the official digital currency to be issued by the RBI,” according to the bill. It also aims to outlaw all private cryptocurrencies in India, with few exceptions to encourage Cryptocurrency’s underlying technology and applications.
- Private cryptocurrencies have prompted the Reserve Bank to express “serious worries.” Bitcoin, the world’s most popular Cryptocurrency, is currently trading at approximately $60,000, having more than doubled in value since the beginning of the year, attracting swarms of local investors.
- According to industry estimates, India has 15 million to 20 million cryptocurrency investors, with total crypto assets valued at roughly 40,000 crores ($5.39 billion).
- Recently, there has been an increase in the number of adverts promising quick and significant returns on cryptocurrency investments, despite fears that such currencies are being exploited to deceive investors with false claims.
- The Standing Committee, which BJP member Jayant Sinha leads, met with officials from cryptocurrency exchanges, blockchain technology, and the Blockchain Assets Council last week! And determined that cryptocurrencies should not be criminalized somewhat regulated.
- In the last decade or so, private digital currencies have grown in popularity. On the other hand, regulators and governments are wary of digital currencies and are concerned about the risks they entail.
- From March 4, 2021, the Supreme Court reversed an RBI circular published on April 6, 2018, prohibiting banks and enterprises regulated by the RBI from delivering services linked to virtual currency.
- Prime Minister Narendra Modi encouraged all governments to ensure that bitcoin does not “end up in the wrong hands” during a keynote talk at the Sydney Dialogue on November 18.
- El Salvador is now the only country that accepts cryptocurrencies as legal cash. //Sources