Chances of seeing an umbrella ban upon the use, adoption, and trading of cryptocurrencies reaping in India as the Government is receiving one after the other proposal supporting the ban. Against public interest, the viewpoints of the Indian Government, Reserve Bank of India, regulators, bureaucracy, and opposition are winning in terms of cryptocurrencies. As time goes by, the possibility of witnessing a ban becomes more vibrant.
Indian Government, bureaucracy, Reserve Bank of India as well as the opposition political party, are all supporting an outright crypto ban. A parliamentary resolution has further been passed by another national political party of India supporting the ban. In the resolution, the Government has been insisted that there is no question that India should proceed with banning cryptocurrencies. The ban must include activities such as investment, buying, selling and even involvement of any kind by an Indian argued resolution moving party.
But the ban will be in contravention of the fact that 2021 was one of the most eventful years in terms of cryptocurrencies. India became the world’s top adopter of digital currencies. WazirX, which is an Indian crypto firm, became India’s biggest crypto firm. WazirX today has more than 10 million Indian customers who have invested funds amounting to US$ 43 Billion plus in 2021 alone. The firm revealed that since 2020, its client base has increased by 1735%. Similarly, India’s contribution to the global digital currency economy has doubled since 2020. In addition, Bitcoin is the most invested cryptocurrency in India as of today.
Apparently, the Indian Government is now proposing that Indian crypto investors should immediately dispose of their digital currencies. Either sell them or exchange them with fiat before a ban is put into place, said Government officials. Even getting rid of digital currencies is not an escape for crypto investors in India. In fact, after selling or exchanging their digital assets, they will be required to report to the tax collection authority about the same. Financial liabilities in the form of penalties too have been imposed if anyone found disobeying the Government policy.
Many politicians in India are suggesting that huge speculation will pave its way into the country’s financials if crypto is legalized.
The views of the Reserve Bank of India are also no different than the Government and politicians. Reserve Bank of India had suggested multiple times that cryptocurrencies are not good for the Indian markets and investors. At best, the country can embrace a digital currency that is developed and regulated by the Reserve Bank of India.
In order to provide for the ban, the Indian Government has taken aback the crypto law which it had supplied for debate to the Parliament. The Government feels that the law proposal needs further amendments and insertions in accordance with the change of viewpoint on the subject.