what is the main reason for india to ban cryptocurrency

[panukurap]

I do not know exactly why India forbids crypto, probably because risky crypto can be used as a crime tool like money laundering and fraud, but I heard that India has now accepted the crypto and started legalizing it.
https://inc42.com/buzz/bitcoin-cryptocurrency-india-government/

[lzby2000]

The legalization of cryptographic currencies will lead to a sharp reduction in demand for Fiat, which is a serious matter for some big countries, and India must be concerned.

[Kayuslawal]

They might just be thinking of the risk posses by the Crypto currency since it has no traces of transactions identified.

[tylerderden]

i dont know why india is not legalizing the cryptocurrency ? 

The RBI is saying that they are banning bitcoin and other cryptocurrencies just to protect investors from the risk of investing in such a volatile market and also as of right now RBI have only ordered the banks to cut ties with the cryptocurrency related companies and not banned the use of cryptocurrency. So people can still buy and sell their bitcoins by using p2p trading platforms and right now wazirx is offering that.

[SixOfFive]

The reasons are the same which are responsible for the negative attitude of the governments towards cryptocurrencies. The cryptocurrencies poses protection and security issues. It can be used for making illegal transactions like drugs and weapon dealing, money laundering acts etc. crypto market can also replace banks due to its technology of blockchain. Obviously the governments want to keep the power in their hands only.

[temperatunre]

South Korea shows an example of introducing tariffs and regulation of the crypto currency market and I am sure other countries will follow South Korea and will begin to change their laws and accept electronic money. Banks have a problem with electronic money because of the potential for electronic money to pose a risk of potential financial and legal clients and security risks.

[shaggy404]

India has not banned crypto 'yet'. Only the ties to banks have been cut off. Banks have been advised by RBI (the central bank) to not provide bank accounts and related services to individuals and businesses dealing with crypto currencies.

AFAIK the gov and RBI initially took a wait & watch approach to study the potential effects of crypto currencies but it took longer than expected and in the mean time several scams / ponzi / crimes related to crypto surfaced in India, some of them even included politicians and police. Cases ahve been registered and many accused are absconding.

In order to tighten the situation until some concrete stand is taken on regulatory approach, the bank ties have been cut to discourage people from investing.

[hknknitin]

Initially Reserve Bank of India(RBI) imosed a ban on cryptocurrencies transaction and later Honbl. Supreme Court of India refused to abolish the ban stating that under the current law system, physical currency must exist with a stamp of the government.

[Sanjida]

India cryptocurrency to ban i think is the main reason negative sentiment of the governments unto cryptocurrencies.there are many indian people don't confide that bitcoin.

[GeorgiyBilyk]

Crypto market is still very young! no one knows what to do with it and what the consequences the world expects, if the crypto market develops very actively! India very carefully approaches the legalization of the crypto market! they have their own silicone valley, where they prepare a large number of programmers and developers! I see how many new projects from India appear! In any case, India is moving in the right direction!

[coromabur]

According to an article I've read, Actually RBI (Reserve Bank of India) has never used the word ban related to bitcoin or cryptocurrency. It only prevents the organization set by the central bank to deal with businesses that are related to crypto currency. Practically, this means the bank must stop deposits and withdrawals to and from the Indian rupee on crypto currency exchanges. This news is widespread and is seen as a "bitcoin ban".

[asus09]

i dont know why india is not legalizing the cryptocurrency ? 

I'm not sure about that, but according to the latest news I read for India,
India now has allowed crypto trading from per to per. so there may be some new policies issued by the government of India.

[Dudeperfect]

It's not only about India but every government out there (with some exceptions) is trying to demoralize and destroy decentralized systems because it is something that has potential to change the world but on the cost of taking away power from centralised authorities. As we all know that Bitcoin is based on blockchain technology which relies on decentralisation, it is ultimately going to reduce the importance and dependability on the centralised institutions like governments.

[lumedeee02]

I'm also wondering why India government should have ban bitcoin but according to what I read I think India government view about bitcoin is that there is scam in it. In such case they were trying to protect there people from being scammed.

[Marlo Stanfield]

RBI and Indian Government is hesitate for cryptocurrency because they think its a biggest security thread for India, money laundering and mafias can do illegal activity from this currency but Indian government can Legalize this currency making a new law and policies for investors who wanna invest in cryptocurrency i think this will make strong Indian economy.

Yes, I'm not too familiar with India, but I do remember hearing and reading lots about all of the 'black money' that exists as a result of corruption and such. And that the government was finally starting to take steps to improve that aspect of the economy. So I can understand why they might think crypto could derail their progress thus far.

[CryptoCoin8487]

i dont know why india is not legalizing the cryptocurrency ? 

Maybe because for some reason that some people are using cryptocurrency as a currency to fund eligal activities in india and maybe they use cryptocurrency to fight the governments thats why india banned bitcoin there. Its just my saying

[rxplcgna]

The Government is concerned that the rapid expansion of Bitcoin will affect the country's economy, which is the main reason.

[perova93]

Not only in India, but all over the world the problem is one - the emergence of new coins and new projects! no one is against the crypto system itself, no one is against bitcoin! The whole world is tired of the appearance of new projects that turn out to be scammers!

[chidrawarster]

The main reason is that the crypto currencies are being used for money laundering activities what i understand from many bank personnel .But to be very honest, Reserve Bank Of India has just banned banks from using the money for crypto related activities like buy, sell or deal with any exchange.But i also understand that a committee has been formed to understand the regulations of the crypto and its usage.

[Thefrolly]

Well the RBI of India banning cryptocurrencies is old news and they have already said that instead of banning cryptocurrencies they will regulate it as commodities. Its time now that the crypto world stops reacting to the country ban news as its mostly FUD and never turns out to be true.