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- India mulling over banning cryptocurrencies.
- The new law will make it a criminal offense to deal in crypto wealth
- Cryptocurrency trade surges despite uncertainties
Cryptocurrencies are facing the heat in many countries, and after Turkey, which has banned all forms of cryptocurrency from April 30, India is also mulling over banning the mining of cryptocurrencies, according to GizChina.com report dated April 18, 2021. If insider reports are to be believed, the new law being worked out will be the stringiest in the world. It will also make it a criminal offense to possess, issue, mine, trade, or transfer the crypto wealth.
Cryptocurrency – A Long history of mistrust in India
Cryptocurrency has a chequered past in India. There were often rumors about the inevitability of a ban. However, it was only in March 2021 that real efforts were started to put a lid on the burgeoning business of cryptocurrency. The Ministry of Corporate Affairs of India made big changes in the Third Schedule of the 2013 Companies Act. It made it mandatory for listed and private business entities to disclose their cryptocurrency holdings and other activities using digital currencies.
Cryptocurrency – A Ponzi scheme?
Cryptocurrency has been labeled as another form of Ponzi scheme. Major Indian banks have repeatedly warned that cryptocurrency will increase the risk of financial instability. Many countries, e.g., Nigeria has put into place restrictions on banks dealing with cryptocurrency transaction. Australian regulator has indicted cryptocurrency for 60% of the financial crimes in the country.
Cryptocurrency ban – A way around
A cryptocurrency ban is in place in many nations, and the Indian government is also following suit. However, many Indians feel that there is a way around the ban. Despite repeated threats from the government, cryptocurrency trading is increasing at a geometric rate. About 8 million Indians now have 100 billion rupees (approximately $1.4 billion) of cryptocurrency.
An example is the Mumbai-based cryptocurrency exchange WazirX launched in March 2018 when the Indian central bank imposed a blanket ban on virtual coins. Nischal Shetty, CEO, and co-founder of WazirX, told Quartz over a Zoom call that the problem was for well-established players and financial institutions. Instead, WazirX launched a peer-to-peer system, thus negating .
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
