BitCoin Ban: Why it is important to ban cryptocurrencies like bitcoin in India

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Crypto News: These days there is a big craze among the youth of India regarding crypto currency. With the kind of activity happening in the crypto market, it is understandable that cryptocurrencies like bitcoin are becoming increasingly popular in the country.

So far, however, it is not known exactly how many people are doing crypto trading in the country and the amount involved. Perhaps one out of every 10 Indian is investing in crypto currency. People do not want to be left behind in this race to become rich overnight, so every day more and more people are getting involved in trading crypto currency.

What is the problem with the government in making a law on MSP?

Recently, the Garg Committee report came in which it was said that the craze of cryptocurrencies in the country has increased since the year 2019. It was said in the Garg Committee report that a law should be made to ban all private virtual cryptocurrencies in the country.

bill in parliament soon

The Government of India is talking about bringing a law on Cryptocurrency in the Parliament soon. It is understood that through this law, where private virtual crypto currency can be banned in the country, there can be talk of launching a digital currency from the Reserve Bank of India. Along with this, some decisions can also be made to promote the technology of cryptocurrency and its use in the crypto currency bill to be presented in the Parliament.

Reasons for banning crypto

The Garg Committee had said that private cryptocurrencies could pose technical, legal and regulatory risks. Some of the main reasons behind banning crypto currency in India are as follows.

  • There is a huge risk in private cryptocurrencies for investors
  • Daily sharp fluctuations are recorded in the price of Cryptocurrency
  • Also there is no sovereign guarantee
  • If the private key is lost, access to the crypto wallet may be lost

Why is crypto banned in India?
Cryptocurrencies can be used for activities such as criminal activity and money laundering. The name of the seller and buyer is not disclosed in crypto currency, so it can also prove to be dangerous. The Reserve Bank of India will have no control over the buying and selling of crypto currency, so there may be problems related to its demand and supply. Along with this, the use of energy can be significantly affected due to the increase in the use of cryptocurrencies.

debate on ban

The issue of a proposed ban on private cryptocurrencies can be debated in Parliament and such a ban can be imposed to fulfill a public policy objective. However, the Indian government can think of using blockchain technology and see how it can be used for public good.

Disadvantages of treating crypto as an asset
If private crypto currency is allowed to be kept as an asset, then it is also likely to create a big problem in the country. This may mean encouraging people to gamble and earn money immediately. Any such rule would see a move towards legalization of crypto currency in the country and there is a possibility of a boom in crypto business in the country.

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