How India will Lose Trillions Due to Crypto Ban – An Analysis by Me
When countries like China, Japan, South Korea, USA, UK, Germany, Australia, Russia, Malaysia, Philipines, Thailand, Italy, whole Europe, Singapore, Hongkong & small countries like Cambodia, Estonia can think about Crypto Regulation but it’s really surprising to see Indian Government thinking about Banning Crypto Currencies.
I am really shocked & then started analyzing regulation in different countries ,how government over there encouraging crypto regulation ? Then try to figure out , why our learned committee decided to eliminate innovation & what are those points,which bothers them the most,surprisingly punishment suggested is maximum & worst than any capital punishment because you would like to bring something to your country ,which is basically followed,researched & regulated by other countries.
The Finance Ministry has proposed a legislation that bans the use of cryptocurrency in India, and makes violations punishable with a fine or with one to ten years of imprisonment. Called the “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019” (see below), the bill states that “cryptocurrency shall not be used as legal tender or currency at any place in India”. It also makes promotion, advertising, And abetment in participation of use of cryptocurrency punishable with a fine, or prison term of upto 7 years. It makes a repeat offence punishable with a prison sentence of 5-10 years along with a fine.
Here’s the committee’s rationale for banning cryptocurrencies:
1.They’re not money at all.
2. Their value is unreliable.
3. It’s harmful to consumers.
4. Mining cryptocurrencies require high amount of electricity.
5. Cryptocurrencies can interfere in monetary policy and regulation of money supply.
Let’s try to figure out answers of all these points & conclude it –
- They are not money at all – None of the country in the world treated Crypto as Legal tender ,neither India should.
- Value is unreliable – If it is so then how big fund houses & world renowned business houses are putting on crypto , what they can see,which we cann’t , have we researched on it & shouldn’t we form a research team to figure out the same.
- It’s harmful for the consumer – We need to frame policies to prevent the same,it is such a beautiful technology , everything can be regulated for sure. Consumer being defrauded in millions every day by licensed entity, so we cann’t stop them to operate.From health till money everything is at risk by so many existing business but point is ,this technology is absolutely traceable but for that we need strict policy framework. “ America’s Compliance Program made possible the restitution of half a million dollars to fraud Victims” – Bitcoin.com
- Mining Crypto currency require high volume of electricity – So far it is still debatable,if there is any doubt in governments mind then we can use “ SOLAR POWER” but we have to get into business as other countries, we cann’t wait for the moment, when other country always over power. Till how many days , India will use all technology from abroad,all the country benefit from our crowd but we keep on using others technology. Crypto currency is not only digital asset but we need to understand the way CHINA is trying to market it’s digital currency globally, India will lose the edge. We need to study JAPAN crypto regulation model,If JAPAN can then why cann’t India ?
The way India is emerging as an aggressive nation these days,it is hard to believe that Government will Ban Crypto Currency .If at all Government will decide in favour of Crypto Ban ,then –
- India will again lose dollar battle globally.
- Other countries like China,Japan,USA,Australia will lead the show & India will be remain as service provider.
- The way crypto currency acceptance increased during this Covid19 & China specifically lead the show now followed by turkey,Italy,we will only lose the innovation & crypto battle globally.
India is a great country & having so many brains are here in India, government should study each countries regulation once again looking at current situation, prepare regulatory framework with minimum permission & observe how it works. In the meantime train all regulators & law enforcement agencies on Crypto Scam,so that consumer should not suffer.
Probable Indian regulation should think in this line –
- 100% bank account transaction on crypto BUY & SALE or else 200% penalty.
- Allow only BITCOIN,Etherium,XRP & for Other Private coin put Security Deposit with regulators.
- Three months Audit for Exchange.
- Tech audit & clearance committee submission each week by Exchanges.
- Bank Account in Limited Banks after Due Police verification of Exchange Owner & Technology Provider.
Current Indian government will definitely look into this matter & some positive news will be there soon for Indian Crypto Community.
Disclaimer: Content placed in this blog is absolutely based on personal view point not for any other research or oficial purpose. I don’t seek any client from this blog. It’s not for advertisement purpose.