Indian Government deciding on Cryptocurrency Ban
The Indian Government have been delegating with brokerages and financial regulators for years. The delegation has related to the banning of cryptocurrencies in India. The ban could be coming far faster than anybody anticipated. A new piece of legislation has been leaked via Twitter from Varun Seth. However, the bill he has indicated hasn’t been confirmed by Indian Government Officials.
The draft is listed as wanting to ban any digital currency or cryptocurrency that generate revenues without the assistance of government-associated financial institutions. This would mean that mining, producing, selling, holding, dealing, issuing, transferring and disposing of multiple cryptocurrencies will become illegal in India.
The Monopoly
There will only be one coin available, that being the Digital Rupee. The Reserve Bank of India will maintain this coin. Mostly, the Indian Government doesn’t want traders in their country making money unless they’re receiving a portion of the profits. It will create a monopoly that will cause countless traders to move their operations to a foreign nation.
Since lawmakers haven’t confirmed the legislation, it’s estimated that this bill has either been shelved for now or doesn’t exist. Blockchain technologies weren’t listed in the leaked legislation document, which goes again prior statements made by financial officials with the Indian Government. Currently, there isn’t any reliability to this Twitter post from Varun Seth.
If the Bill is Real
If Varun Seth is correct about this potential legislation, then cryptocurrency in India will quickly die and lose its profitability as an industry. Today, the industry is already struggling due to the public outcries against crypto made by government officials. It’s reached a point where Facebook, the social media giant that has more than a billion users in India, announced they wouldn’t be launching Project Libra in India. Considering that India is Facebook’s second-largest market, this came as a significant blow, as will this legislation to all brokers and traders in India.