[ad_1]
A couple of days ago, a panel in charge of providing guidelines on how to deal with cryptocurrency in India presented its report to the government.
In it, they suggested to total ban on all these virtual currencies in India. So what happens to cryptic investors in India after all this? The future is in the air for now.
1) Suggestions do not read
READ ALSO: Bengaluru has just obtained the first bitcoin ATM in India, despite the RBI's anti-cryptocurrency regulations
First of all, the group, led by Under-Secretary for Economic Affairs Subhash Chandra Garg, is only providing suggestions to the government and not to laws. This means that the government could go in a completely different direction, and decide against a general ban, after all.
2) The drafting of a bill takes time
If a ban is the choice of action, however, would require the establishment of a legal framework. After all, the reason why the whole issue has demanded this long debate is because the existing RBI guidelines can not be effectively adapted to cryptocurrency. So making the illegal encryption operations in India will probably take at least a few months.
Do not lose
<! –
->
3) Your investment is useless if you can not cash it
In the meantime, however, investors are somehow stuck. The banks have already received orders to cease transactions to be encrypted at Rupee, which means that investments in Bitcoin, Ethereum, etc. They are rather useless.
Reuters
READ ALSO: Cryptocurrency Company moves the High Court against the RBI circular on virtual currencies, wants to make them legal
Unless you have the opportunity to transfer them to other portfolios and liquidate those funds in other countries, that money technically does not exist for you, no matter how much you value.
4) There is no way to "forbid" the possession of cryptocenetics
In the event of a ban, many crypto-enthusiasts say it would be incredibly difficult to enforce, and in fact it would. After all, the main characteristic of the blockchain is that it is decentralized. Buying and selling cryptocoins could be made illegal, but the government has no precedent to prohibit their simple possession.
5) Indian crypts exchanges will be hit harder
Furthermore, in order to suppress cryptocurrency transactions, the Indian government must prohibit or block local cryptographic exchanges, which still leaves international transactions free to transact.
READ ALSO: "Decipher" the potential of Cryptocurrency in India and analyze the changing face of money
And if they try to block the URLs of those exchanges, the problem is solved by a simple VPN or proxy. All in all, everything is fine and the government must impose a ban, but another thing is to enforce it.
6) Desperate investors to cash out will be put at risk
At the very least, suppressing legitimate trade could have the negative effect of pushing investors to shady ones, putting even more people at risk than the initial "problem" of cryptocurrency investments. Instead, perhaps the government may want to deepen the search for ways to understand and regulate trade, instead of trying to burn it to the ground.
<! –
->
[ad_2]
Source link
