What should be India’s take on cryptos?
If we take up the data available on the internet, there are approximately a hundred million cryptocurrency investors located in India. It is more than another country in the whole world. The second-largest position is held by the United States of America, with 27 million cryptocurrency investors. After that, Nigeria followed the United States of America with 13 million cryptocurrency investors. Therefore, it is pronounced that if there is going to be any negative statement about cryptocurrencies through the government, it will make people suffer, and some of them might also have to go through heart palpitations.
Just a few days ago, the news was circulating all over the internet that the new cryptocurrency bill will ban the use of cryptocurrencies in India completely. However, the news was clarified by the finance minister of the country. It is very well aware that the finance ministry and the government are unsure if they should regulate cryptocurrencies. Still, it is entirely evident that they will not allow people to use cryptocurrencies as a medium of exchange. Also, Nirmala Sitharaman said that the new cryptocurrency bill, the official digital currency Bill 2022, is under consideration by the cabinet so that appropriate considerations and regulations can be imposed on the use of digital coins. If you are interested in bitcoin trading check why your business needs a bitcoin payment getaway.
First of all, making a law over anything essential but does not have a definition is very difficult. The same is the situation with cryptocurrencies like bitcoin. The anonymous person or group of programmers is the reason behind the creation of bitcoins and the name of such a group of Satoshi Nakamoto. However, bitcoin is a decentralized technology and can be used by any person across the globe. Now, the fundamental question is, what exactly is a cryptocurrency? It can be a currency or a commodity according to what you are using it. Also, it can act as an asset. It can provide you with fruitful investment benefits, and therefore, many people invest money in bitcoins all over the world. Finally, it can act as a property if you want to keep it for a very long period. Therefore, there are specific reasons why different nations of the world are willing to impose regulations on bitcoins and other digital coins.
Why should crypto be regulated?
The government wants to regulate cryptocurrencies and bitcoin because they are very well used in criminal activities like money laundering and criminal funding. Also, many organizations and groups of people can use it for tax evasion. The basic idea behind creating a cryptocurrency was making a decentralized payment method. Also, the government controls the monetary system, which is pending in all the nations in the world. However, cryptocurrencies are decentralized, and the government cannot control them. It is the main reason because of which the government is not in favor of something they cannot control.
A very unexpected event occurred on May 3, 2021, when the most extensive pipeline system of the United States of America was under attack by hackers. The hackers named it a colonial pipeline, and they shut down the pipeline system for three days. They demanded bitcoins in return for the settlement of this hack because they believe that bitcoins are not traceable by anyone. However, within a few weeks, the United States technology and workforce managed to trace the Bitcoin transaction is given to the hackers. It helps the United States of America to cover about $2.3 million worth of bitcoins in the hack. Let us say that bitcoins are not entirely discreet. You need to understand that a vast nation like the United States of America has the means to recover from the loss of technology, but other nations are not like that.
Crypto in India
As per the sources, the reserve bank of India first decided to ban cryptocurrencies in April 2018. The ban was completed, but it was challenged in court. Therefore, in the proceedings, the Supreme Court of India decided that cryptocurrencies cannot be banned entirely in the country because many business organizations are threatened because of this decision. On March 8, 2020, the ban was removed, and therefore, the cryptocurrency invested started to get a kick in the country.