5 Questions to Ask if you belong to the Indian Crypto Community

[pakhitheboss]

Happy Holi!! to all   and Sorry, for not being active on this board.

It has been a long time that I have been listening to whether the government of India will ban cryptocurrency or not. The answer is they cannot and will not otherwise they will lose on the concept of "Empower India and Indians"

Whatever I have written here is my view after thoroughly reading the paid media and after viewing the videos of those so-called crypto gurus on Youtube.

There are five questions that I would like to question and read comments related to it.

• Why after so much negativity suddenly there is a positive outlook on mainstream media?
• Why suddenly the government is asking top companies to reveal their investment in cryptocurrencies?
• Why suddenly one day our respected FM decided to stop the FUD?
• Why was Binance allowed to invest in WazirX?
• Why Coinbase is hiring Indian IT professionals suddenly?

These five questions will answer you clearly what the Indian Government is planning? I hope so!

I have heard so much negativity prior to the RBI ban in this forum that I have started neglecting such news about the cryptocurrency ban in India.

P.S - Do you think a country like India, can genuinely monitor every cryptocurrency transaction?
Yes, it can if it is done through a KYC verified Indian exchange

[avikz]

• Why after so much negativity suddenly there is a positive outlook on mainstream media?
• Why suddenly the government is asking top companies to reveal their investment in cryptocurrencies?
• Why suddenly one day our respected FM decided to stop the FUD?
• Why was Binance allowed to invest in WazirX?
• Why Coinbase is hiring Indian IT professionals suddenly?

The government of India had faced great criticism after their initial report from inter ministerial committee led by Mr. Garg. So they are not trying to rush the decision of banning. What they are trying now is called risk reward analysis. They are trying to understand how the government will benefit financially from the crypto holders and how much they will loose if they ban it.

I even heard that FM is trying to consider GST on crypto transactions. But nothing has been confirmed yet. So what all mainstream media is doing is simple speculation. 

I am hopeful that India probably will not ban crypto but they will definitely try to impose heavy taxes on crypto transactions and gains. See, we all are speculating here!

[webtricks]

...
P.S - Do you think a country like India, can genuinely monitor every cryptocurrency transaction?
Yes, it can if it is done through a KYC verified Indian exchange

This wouldn't be enough. We have stock market which is fully transparent. But still government is unable to automate the regulatory requirements on the trading of securities. They failed to bring the trading of securities within the purview of GST. In income tax as well, the responsibility to report trading profits is on the tax-payer.

Comparing to the stock trading, the trading of cryptocurrencies is even more complex. Along with the problem of recurring transactions (same unit of security being traded again and again), there are too many leakages and injections in this market. You can literally buy cryptocurrencies over-the-counter and no one even notice that the ownership of the coins have been shifted. Then you can easily sell the same coins on KYCed Exchange and claim the sale as anything (capital gain, income from business, return on investment, anything). It is too complex to trail back the source of coin and locate the real source of income.

It is almost impossible for government to monitor the entire market. Yes, they can ask for the transaction records of certain traders, issue them the notice. But in the end, government still have to rely on traders to report the source and profit element in their transactions and they don't have many means to verify its authenticity.