what is the main reason for india to ban cryptocurrency

[Crypto Deep]

The fear of money laundering via investment in these currencies and ensuring customer protection from the price volatility and complex nature of these assets are the main reasons why the government has not been comfortable with these digital assets. The hesitation is not entirely unfounded: The price of one bitcoin, valued at over $19,000 in December, is now worth less than $8,000. However, conversations with half-a-dozen officials reveal that all may not be lost for cryptocurrencies, despite unhelpful statements from the finance ministry and the Reserve Bank of India (RBI). A bunch of career bureaucrats and bankers are currently in the process of writing their fate. And even if they do survive, bitcoin and its peers will likely remain on a tight government leash.

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[automaticmoney]

as per Indian government claim the main reason for cryptocurrency ban is illegal transactions that are carried out aboard with the help of crypto currencies Rbi strictly wanna ban bitcoin

[Almirante3]

India was not perfectly cohesive in its stance on the crypto. The relationship between the two dates from December 2013, when the RBI first issued a general public announcement to potential crypto users, alerting them to the typical risks involved - volatility, security, and links to illicit activities. Since then, the agency has released similar notes in response to the popularity of the cryptogram, with the latest issue in December 2017.

[Vishnu.Reang]

Being an Indian resident, I have to say that the situation here is hopeless. Only 3% of the population pays income tax and the government is always harassing this segment for more and more taxes. On the other hand, the farmers are driving around in their BMWs and Audis and they are 100% exempted from income tax.

[shu_22]

India's central bank RBI has stated in the court that any currency that is being used as a means of transaction must be in physical form and have government's stamp on it so for the time being, they have banned crypocurrencies and their transactions in India.

[beliveinsomeone]

Maybe the India government is afraid of the development of bitcoin

[thangthoa]

They have their own reasons and we must adhere to them if in India

[Macon Bargeman]

A threat to the existed financial system, especially the banking system. However,what we also need to know is that quite a large part of India people has no bank account, which is sure to be rather profitable. With advent of cryptos and blockchain technology increase the competition to attract users of this sort to open a bank account and deposit or transfer their money in the system, for the new technology is in fact a lot more convenient compared with the processes in banks. What’s more, it’s commercial banks that the RBI uses to perform policy and regulate the whole market. If capitals are all flow to a system that beyond the supervision of the RBI that it’s certain to overburden the Reserve Bank to discipline the financial ecosystem.

In conclusion, the reason why the authority of India finally decide to crackdown the market boils down to its potential nature as a spam and threat to the local market and finance.

[ASHANABEY]

It is nothing to do with cryptocurrencies and there nature India as a country has it's own reasons to ban due to possible criminal activities that can happen if corrupt people gets to use cryptocurrencies to there own advantage to illegally hide and transact there money from the government. This is a scenario not only India face but many countries face which is why they make more and more restrictions against the usage of cryptocurrencies

[vonnyaries]

i dont know why india banned bitcoin in their country, but as i know there are many factor that government banned bitcoin and cryptocurrencies, the big factor that will affect this situation is because bitcoin can't managed by the government and they can get the tax from the bitcoin holder, and the government afraid if someday will be infaltion because of this activity

[Baekhyun]

i dont know why india is not legalizing the cryptocurrency ?  

From my point of view India is a country that is building its economy and this certainly requires tax funds from its people to build its country. whereas bitcoin is a digital currency technology that is tax-free transactions so that this will harm the India government and weaken their national currencies.
I think that's the point of the problem, it's not a simple problem when we govern a country, everything must be thought through carefully.

[Dmitry.Vastov]

i dont know why india is not legalizing the cryptocurrency ? 

We all know that bitcoin has also involved in many illegal activities like selling drugs, explosives and money laundering and many more and this is the most prominent reason why most of the countries are in against of bitcoin and does not want to legalise it in their nation and India is one of them and this is the only reason why Reserve Bank of India has banned bitcoin but still there are hopes that there could be some amendments in this banning notice of Reserve Bank of India 🇮🇳

[Ibas samara]

This news makes investors and technology platform providers for cryptocurrencies are worried as uncertainty looms over future of digital currencies in India.
This is due, RBI considers that Bitcoins cannot be treated as currency under India's existing law. Under Indian financial law it requires mandates coins to be made of metal or exist in physical form and stamped by the government.
But, the finance ministry has yet to make a final ruling on a formal ban.

[stepanova]

It is still not banned completely. But the doubts that the government is having might be because of tax evasion issues.

[PSYCHE0317]

They cleared the speculations and misinterpretation of various sources with their press statement.  They say that there is no total ban of bitcoins in India but RBI is ending its relationship between its own banks and any user or corporation dealing with cryptocurrencies because they will be launching their own fiat currency.

[pthnmj]

In my personal opinion, the main reason behind not to accept bitcoin as legal tender in India,  if they allow Cryptocurrency as legal then they have to provide security against any act of forgery. And If any wallet hacked, private key stolen any losses, so there won't be any way to Trace.

[Sanu Simon]

In a country with 100+ crore population it is impossible to keep track of each and every transaction. Similarly through cryptocurrencies it is simple to scam investors, so to avoid such losses India might have come up with such a plan. From my understanding it has analyzed only the negative part. Haven't analyzed the good side, soon the ban will be removed when pressure from government peaks.

[LyQaN]

The main reason for any country to ban cryptocurrency is the fact that cryptocurrency are not under the control of any government.Government cannot control cryptos transactions.So in order to stop or we can say to prevent the misuse of cryptocurrency they ban them because people find it as a way to perform illegal dealings using cryptos as they know that they will not get caught.

[HiringYou]

The legal status of Bitcoin in India is still not clear.A temporary stay has been imposed on the digital exchanges.This is due to the case filed by RBI against these exchanges.The decision will be made on the next hearing that is on 11th of september 2018.Then we will come to know that whether these exchanges will work or not.So we can't say that Bitcoin is banned in India.It is just a temporary stay on the exchanges imposed by the supreme court.

[eaLiTy]

In a country with 100+ crore population it is impossible to keep track of each and every transaction. Similarly through cryptocurrencies it is simple to scam investors, so to avoid such losses India might have come up with such a plan. From my understanding it has analyzed only the negative part. Haven't analyzed the good side, soon the ban will be removed when pressure from government peaks.

If you have any idea about how blockchain works no one in the right sense will tell that it is impossible to track the transactions, it is a public ledger and how difficult it is to understand the basics, the government has not done any studies and they are yet to come up with any regulations and the RBI statement will not last for a long time as they have not done any studies before restricting the banks to conduct business.