India keeps playing with the emotions of the crypto community in India with constant back and forth of change in rules.
First it was a complete ban of crypto transactions. RBI forbids banks from serving any clients that deal in cryptocurrencies. Thanks to the Supreme court decision, RBI had to back off.
Now, there is a renewed effort to place a ban on crypto again.
Is Crypto Ban a good thing for India’s financial future?
No, Cryptocurrency is here to stay according to many financial investors and billionaires. As nations prepare for a hyper-inflation cycle to sweep the world, Cryptocurrency can act as a hedge in addition to gold and silver.
If the government is concerned about illegal activities with cryptos then they can relax because most crimes happen in fiat cash transactions, not crypto which is traceable.
Crypto traders generally are not the ones that take part in illicit trades. It is those who introduce illegal ICOs and OTC trades.
How about regulations?
Instead of banning crypto trades, how about bringing clear regulations to provide a framework for the crypto trading.
Such a framework should include stricter guidelines for ICOs and OTC trades.
Crypto exchanges can relay the trading information directly to the tax authorities (instead of needing to be subpoenaed) so that there is transparency.
Will India Ban Cryptocurrency Trading?
That depends on whether India wants to be in the ranks of the United States, Switzerland, South Korea, etc., or if it wants to be counted among China, Russia and North Korea.
The United States, South Korea and Switzerland (along with other countries) are doing everything to stay ahead in the blockchain and crypto race.
Other countries we stated above are working to stomp on the innovation.
A better question is: Can India ban cryptocurrency trading?
The answer is NO.
To ban cryptocurrency trading – India will have to shut down the internet.
In the event of an actual law that bans Indians from participating in the cryptocurrency trading, the only people that will be impacted by those are the ‘honest’ citizens because the crooked ones will still find ways to trade using VPN or alias names.
For a country that wants to be at the forefront of technological revolution a ban would be a very backward decision.
We urge the Indian government to NOT punish the honest citizens by introducing a ban. Rather, introduce a sensible legal framework for everyone to operate in.
This will bring more businesses to India and take India’s platforms to the world.
Thank you for reading and sharing this article. We appreciate you.
Stay safe and healthy!
Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.
We do not endorse or guarantee the accuracy of the information and claims made.
All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.