India plans to introduce law to ban cryptocurrency trading

[AnonBitCoiner]

A study!! Lol! The government offices in India are headed by One-exam-wonder beaurocrats who are more willing to suck the dick of political leaders than to conduct a study. I have worked with few of them for 3 years and I know how the system works.

India's priority is to build temples instead of factories. Cryptocurrency is not even a matter of discussion to them!

I am glad to see that you are identifying the virus that is affecting this country, i am not talking about the pandemic or any other virus but the political  polarization and the lies that are spread with the help of media channels and for most part the courts are trumpeting according to the central government and in that predicament where do you they get time to understand or discuss about cryptocurrency and is there anyone in the ruling party that could understand these things  .

We are witnessing demagoguery for the past few months and no mainstream media is discussing about the real problems India is facing rather they are diverting with sensationalism and i feel pity and angry about the situation we are in. We are seeing these kind of topics quite often and even if they ban without any review or discussion even though i am aware of the studies they submitted  i will not be surprised because they care less about the common people or the difficulties faced by people or small businesses or innovation.

It not seems to like to be the law will against the cryptocurrency in India.It's like a reduction of gold price in few days after the economical activity and flow of gold material was increased.Both not possible with a strategy.If the ban was happened,their will be reduced flow of bitcoin .Because India a big market to bitcoin.

[teosanru]

A study!! Lol! The government offices in India are headed by One-exam-wonder beaurocrats who are more willing to suck the dick of political leaders than to conduct a study. I have worked with few of them for 3 years and I know how the system works.

India's priority is to build temples instead of factories. Cryptocurrency is not even a matter of discussion to them!

I am glad to see that you are identifying the virus that is affecting this country, i am not talking about the pandemic or any other virus but the political  polarization and the lies that are spread with the help of media channels and for most part the courts are trumpeting according to the central government and in that predicament where do you they get time to understand or discuss about cryptocurrency and is there anyone in the ruling party that could understand these things  .

We are witnessing demagoguery for the past few months and no mainstream media is discussing about the real problems India is facing rather they are diverting with sensationalism and i feel pity and angry about the situation we are in. We are seeing these kind of topics quite often and even if they ban without any review or discussion even though i am aware of the studies they submitted  i will not be surprised because they care less about the common people or the difficulties faced by people or small businesses or innovation.

Couldn't agree more with you. But coming to the point of legalizing of Bitcoins. I have seen one tedency of this current ruling governemnt. That is their favouritism towards the Corporates. They have tried their best to give most of the powers to Large Corporates and this is something which makes me feel Optimistic about Bitcoin. We saw that Binance recently Invested in WazirX and then a private equity fund invested in Unocoin which is another crypto exchange. So these big companies can obviouly get some favours from the government by lobbying them. So as more major players would enter this arena of cryptocurrency the more difficult it would become for the government to ban or impose restrictions on cryptocurrencies.

[Ridcan]

The Indian government should realize bitcoin is a global currency before it is too late.  If he goes to ban cryptocurrencies, they will surely fall behind in technological terms.

[teosanru]

The Indian government should realize bitcoin is a global currency before it is too late.  If he goes to ban cryptocurrencies, they will surely fall behind in technological terms.

I don't really think so! This falling behind in technological term is something we are just saying for making ourselves Happy. I mean if you see China it has banned cryptocurrencies for quite some time now and I don't see them lacking behind in technology in any way. I am obviously not in favour of the ban but the ban would also mean that India will still stress of digital ledger technology it's only not ready to use it for monetory purposes. Even in the draft committee report the makers were pretty positive on the technology. As I said only way and argument to bring a law for legalization of cryptocurrencies in India is the argument of free markets. Companies can try to put pressure on this government for lucrative tax revenues and maybe some foreign exchange.

[Findingnemo]

The Indian government should realize bitcoin is a global currency before it is too late.  If he goes to ban cryptocurrencies, they will surely fall behind in technological terms.

I don't really think so! This falling behind in technological term is something we are just saying for making ourselves Happy. I mean if you see China it has banned cryptocurrencies for quite some time now and I don't see them lacking behind in technology in any way. I am obviously not in favour of the ban but the ban would also mean that India will still stress of digital ledger technology it's only not ready to use it for monetory purposes. Even in the draft committee report the makers were pretty positive on the technology. As I said only way and argument to bring a law for legalization of cryptocurrencies in India is the argument of free markets. Companies can try to put pressure on this government for lucrative tax revenues and maybe some foreign exchange.

Actually ban is not going to stop the users from using crypto currencies, China banned cryptos because they have some alternatives to give it to the people to make more money out of it while other developed countries to utilize the bitcoin usage by imposing high tax rates so these are really better than country like India banning it since there is no news that they are going to launch their CBDC so people will use the bitcoin even if it got banned and its only revenue loss to the government.

[Ridcan]

The Indian government should realize bitcoin is a global currency before it is too late.  If he goes to ban cryptocurrencies, they will surely fall behind in technological terms.

I don't really think so! This falling behind in technological term is something we are just saying for making ourselves Happy. I mean if you see China it has banned cryptocurrencies for quite some time now and I don't see them lacking behind in technology in any way. I am obviously not in favour of the ban but the ban would also mean that India will still stress of digital ledger technology it's only not ready to use it for monetory purposes. Even in the draft committee report the makers were pretty positive on the technology. As I said only way and argument to bring a law for legalization of cryptocurrencies in India is the argument of free markets. Companies can try to put pressure on this government for lucrative tax revenues and maybe some foreign exchange.

Yes, you are right.  actually this is not lagging behind in the technological sense.  because even if they prohibit cryptocurrencies, they can make moves that can move forward technologically.  Actually, I meant they would fall behind in cryptocurrency technology.  I guess I couldn't explain it right.

[teosanru]

The Indian government should realize bitcoin is a global currency before it is too late.  If he goes to ban cryptocurrencies, they will surely fall behind in technological terms.

I don't really think so! This falling behind in technological term is something we are just saying for making ourselves Happy. I mean if you see China it has banned cryptocurrencies for quite some time now and I don't see them lacking behind in technology in any way. I am obviously not in favour of the ban but the ban would also mean that India will still stress of digital ledger technology it's only not ready to use it for monetory purposes. Even in the draft committee report the makers were pretty positive on the technology. As I said only way and argument to bring a law for legalization of cryptocurrencies in India is the argument of free markets. Companies can try to put pressure on this government for lucrative tax revenues and maybe some foreign exchange.

Actually ban is not going to stop the users from using crypto currencies, China banned cryptos because they have some alternatives to give it to the people to make more money out of it while other developed countries to utilize the bitcoin usage by imposing high tax rates so these are really better than country like India banning it since there is no news that they are going to launch their CBDC so people will use the bitcoin even if it got banned and its only revenue loss to the government.

I think there are a couple of choices that the government has. The very first choice is to be let the things flow the way they are flowing until there is some big significant event which makes it necessary to have a legislation. India always have worked this way but this time the government is a bit different.

So brings us to option 2 that would be outright ban on cryptocurrencies for financial purposes but still using CBDC or advocating blockchain as a technology. But this would obviously lead to more use of VPN in the country until there is a complete criminalization procedure for it's use which indeed is pretty harsh and brings lots of political consequences. And obviously leads to loss of taxes but it might be possible that recovery of this lost tax could be made in form of certain penalties on the ones who use it despite of ban.

Option 3 is obviously legalizing use of it with certain regulations most probably a regulatory body or something could also be formed which obviously would give government right to some self declared taxes but might even increase money laundering activities whereby people could even convert their cash transactions into Cryptocurrency transactions. But yes KYC etc. Might help in solving this problem to some extent.

These are the options which Government has to choose from.

[Findingnemo]

^Legalizing is better than restring it because legalizing can help the developing country like India to create more opportunities for their people in the earning and also the government will get something in the return of tax.But banning it will stop the revenue completely and it is not going to be easy to track the people who still uses cryptos when it was banned.

[7788bitcoin]

^Legalizing is better than restring it because legalizing can help the developing country like India to create more opportunities for their people in the earning and also the government will get something in the return of tax.But banning it will stop the revenue completely and it is not going to be easy to track the people who still uses cryptos when it was banned.

I am not hearing good things about the ruling government in India as i have seen some dumb things and memes in social media regarding combating the pandemic asking everyone to drink urine to overcome the virus and if these people are ruling then you should not expect anything smart from them  .
Banning is not a smart move and considering their population along with China a massive adoption will be something huge.

[SaShiRaJaVu]

I am not hearing good things about the ruling government in India as i have seen some dumb things and memes in social media regarding combating the pandemic asking everyone to drink urine to overcome the virus and if these people are ruling then you should not expect anything smart from them  .

Mr Modi is a global superstar atleast in his mind and his followers mind he is one and if their representatives comes up with dumb statements then it is because of their school of study as none of them have the proper education to understand anything but that is not the situation with the majority of the people  .

Banning is not a smart move and considering their population along with China a massive adoption will be something huge.

There are many users and the adoption rate is improving every year.

[Findingnemo]

^Legalizing is better than restring it because legalizing can help the developing country like India to create more opportunities for their people in the earning and also the government will get something in the return of tax.But banning it will stop the revenue completely and it is not going to be easy to track the people who still uses cryptos when it was banned.

I am not hearing good things about the ruling government in India as i have seen some dumb things and memes in social media regarding combating the pandemic asking everyone to drink urine to overcome the virus and if these people are ruling then you should not expect anything smart from them  .
Banning is not a smart move and considering their population along with China a massive adoption will be something huge.

There are some positive news as well in India for cryptos, read an article which said in India some bank is going to open 22 physical banking place for crypto related services so if government is completely against then they might disapprove such proposals right?

[Argoo]

India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market. The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media.

So far, we have only heard for several years about the intentions of the Indian government.  They sometimes change, so it's too early to say anything about this.  A specific normative act will be adopted, then it will be possible to discuss its norms.  Until it comes to the adoption of specific laws, the situation may still change.  Now in the world we do not see big obstacles for the spread of cryptocurrency from the side of states.  Therefore, not all is lost.

[vaultman]

It is not known how true this news is, but if so, then one can only sympathize with the people of India. Perhaps the government sees this as some kind of function to control the population so that they remain poor and illiterate, thus it is possible to continue doing nothing for the population of the country, since they are used to living in such an environment and do not know any other life. In general, I see a lot of users from India on the forum, I think that this is still more fake news than true.

[ven7net]

India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market.

The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media.

The federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, according to two people.

The Indian central bank had in 2018 banned crypto transactions after a string of frauds in the months following PM Narendra Modi’s sudden decision to ban 80% of the nation’s currency. Cryptocurrency exchanges responded with a lawsuit in the Supreme Court in September and won respite in March 2020.

India’s decision will be crucial as more Asian nation countries weigh pros and cons of virtual currencies. Rival China, which banned initial coin offerings and virtual currencies in 2017, recently allowed Bitcoin trading as virtual property, not as fiat money. It is also planning its own central bank digital currency. Both Singapore and South Korea regulate crypto trades.

A renewed trading ban could affect more than 1.7 million Indians trading in digital assets and a rising number of companies setting up platforms for the trade, data shows.

Instead of a ban, India needs a regulatory framework to protect uninformed retail consumers “to ensure adequate oversight of the government and the RBI over cryptocurrency businesses,” said Sanjay Khan, Partner, Khaitan & Co, a New Delhi-based lawyer who advises firms. “India can actually benefit from such a regulation to attract cryptocurrency investors and businesses.”

https://economictimes.indiatimes.com/news/economy/policy/government-plans-to-introduce-law-to-ban-cryptocurrency-trading/articleshow/78132596.cms

How many time they are trying to do that! Do you think they will achieve this success by banning cryptocurrency??

About a month ago I met a crypto investor from India and he said that opposite the Indian government is loyal to cryptocurrencies and that he is very happy about it. Of course, I do not presume to say that this is exactly the case, but this is exactly the conversation I had with my Indian colleague. As far as news is concerned, we know that very often news is created with the intention of misleading. Based on this, I would be very careful about this kind of news, since in the end it may turn out to be just a hoax.

[stomachgrowls]

;

About a month ago I met a crypto investor from India and he said that opposite the Indian government is loyal to cryptocurrencies and that he is very happy about it. Of course, I do not presume to say that this is exactly the case, but this is exactly the conversation I had with my Indian colleague. As far as news is concerned, we know that very often news is created with the intention of misleading. Based on this, I would be very careful about this kind of news, since in the end it may turn out to be just a hoax.

You cant say its misleading because decisions like this is really subjective to change which means they might able to ban it then after a few months they do suddenly changed up their minds and starting to adopt or integrate it into their nation.We have seen many times like this about banning and unbanning bitcoin or anything that do correlates with it.

This doesnt talk only about India but also in other countries as well where these kind of decision do floats and since youre friend had already confirmed out that they been doing well towards crypto then its a good new.We do all hope for global adoption.

Each government do have their own views and perspective thats why we can see different kind of decisions which could really be changed up later on.

[squatter]

As it turns out, India will not be banning Bitcoin trading. They're now getting ready to tax Bitcoin traders instead:

India to Impose 18% Tax on Bitcoin Trading

India’s Central Economic Intelligence Bureau (CEIB), an important part of the Indian Finance Ministry has put forward a proposal to the Government to impose an 18% tax on Bitcoin trading in the country.

According to a report published by the Times of India, an estimated amount of the total Bitcoin transactions in India stands at around 40,000 crore INR ($5.5 billion), the newly proposed 18% good and services tax (GST) on Bitcoin transaction means at least 7,200 crore INR ($1 billion) additional tax revenue for the Government.

The report outlined that the CEIB has requested the Indian Government to recognize Bitcoin as an intangible asset to impose a GST levy on all Bitcoin transactions in the country.

CoinDCX reported rapid growth in new users and volume recently. The government must be taking notice -- just as it's also looking for ways to pay for the country's sizeable and ongoing stimulus programs.

2021 is shaping up to be the year of cryptocurrency regulation. Happy New Year.

[skyline65]

Well that's why the innovative way are introduced. The platform is DEX platform, where you have connect the wallet using metamask and you can start trading. Yes it is decentralized but unfortunately we cannot trade with btc.

But i can see that there is no way to ban cryptocurrency because cryptocurrency is a public properties and public are here to complete the transactions using mining process , and all together btc transaction is peer to peer transaction , so whenever we purchase any cryptocurrency we buy directly from the person. So technically banning cryptocurrency will not possible.

After all blockchain is future.

[tabas]

But i can see that there is no way to ban cryptocurrency because cryptocurrency is a public properties and public are here to complete the transactions using mining process , and all together btc transaction is peer to peer transaction , so whenever we purchase any cryptocurrency we buy directly from the person. So technically banning cryptocurrency will not possible.

It is possible to prohibit deals and trades inside the jurisdiction of any country. Like on this example, it has been banned on India before but it cannot be banned in other parts of the world.
But just as the news came, it's highly possible that this unstoppable news about them banning and RBIs issue against it will come to an end because of the possible taxation that will rise on this country.

[Clement Kaliyar]

It is possible to prohibit deals and trades inside the jurisdiction of any country. Like on this example, it has been banned on India before but it cannot be banned in other parts of the world.

Even when there was a restriction for the exchanges people were trading and nothing changed in the volume, there was no ban on trading but only restrictions on exchanges to carry on the business and then you saw an influx of P2P based exchanges and everyone was able to overcome those restrictions by the RBI and now it is lifted because the Supreme court lifted the restrictions as it was against the law.

[eaLiTy]

CoinDCX reported rapid growth in new users and volume recently. The government must be taking notice -- just as it's also looking for ways to pay for the country's sizeable and ongoing stimulus programs.

I would like to point out how the Modi government makes everyone thinks that the stimulus programs are really huge, first they combine the packages they announced in 2019 as per the financial budget and then announced one big amount and if you look at the amount of money they really spent you will understand the truth and another fact is that they combine monetary along with the fiscal package to reach these big numbers  .

Another reality is that they sanction three Lakh crores in the total package of 20 Lakh Crore they announced and till now they actually dispersed only 1.5 Lakh Crore as per the RTI report and that is the reality of these gimmick packages.

If you start digging deep you will understand the hollowness of the Modi lead government and it is not a big surprise if they will be taxing 18%.