The Indian government plans to outlaw cryptocurrencies, and the ministry of finance has held various official meetings and consultations related to the same. This step has been taken by the Supreme Court stating about the banking prohibition levied by the central bank, India’s Reserve Bank (RBI).
The draft “Banning Cryptocurrency and Regulation of Official Digital Currency Bill 2019″ has clearly stated if they come across someone carrying out these following things: mines, generates, holds, sells, transfers, disposes of, issues or deals in cryptocurrencies, would have 10-year jail sentence.
Everyone is discussing in the Indian Crypto Community about the snags of the ban on cryptocurrencies and this has become a hot topic in the global crypto market too. It is a huge loss for the entire community again incase the ban continues.
So how this ban plays a big role in terms of trading, banking, and many more sectors? What Indian’s private or Government sectors are going to lose?
Indian government plans on banning cryptocurrency is not a better idea.
Some impacts : –
Here we are listing some impacts of the Indian government’s plan the ban cryptocurrency on investors, nations and its effects :
- If the government stays on firm decision to ban cryptocurrency, India won’t have blockchain and crypto expertise, and it will result in no crypto-related work reaching India.
- If the bill happens per the plan, then India would be the first colossal country to ban innovative technology like cryptography. Around 5 million Indians hold thousands of crores worth of crypto-assets. They would have to dispose of it and risk all their resources. No wonder, there will be high chances of Indian citizens losing their hundreds and thousands of crores of their self-made money. Apart from this, the nation will also experience the loss of thousands of jobs that otherwise would be there if the crypto sector were to be managed positively.
- Indirectly, India’s government would raise its burden of monitoring illicit transfers, which would have been simpler if it supervised tight KYC-based exchanges.
- A prohibition is most likely to dissuade even the legal operators because they do not expect non-compliance.
- The Bill’s proposed concept of cryptocurrency is rather specific. It aims to prohibit-maybe inadvertently-all stored units of value, whether they are intended to be an alternate type of money. The Bill’s far-reaching implications are likely to be challenged and merit a Supreme Court review.
- For people who got involved in dealing with cryptocurrency before the law, the current Bill does not have a safe harbour for them. While the Bill is unlikely to have a retrospective effect, investors and traders are genuinely concerned about how they can exit their positions after the ban.
- Cryptocurrencies mining has been part of India like many other countries. Still, in case if the government decides to ban cryptocurrency, it will be a problem for those first movers who have already invested heavily in setting up mining rigs – specialized high-processing power computers.
A large number of traders are earning a living by trading in crypto-assets.
- People like YouTubers and influencers who are earning living teaching about digital currency and crypto-trading to citizens will suffer too. Many other individuals will incur, such as developers of apps on public Blockchain platforms such as Ethereum. What will happen to them post ban?
- Clients are concerned regarding this matter of cryptocurrency ban. As we know, India is a country which is mainly dependent on the services sector, and it is apparent that India will inevitably lose its edge as a technological power if it bans crypto. No wonder, it will result in a massive loss of jobs and a brain drain. Thus, India will suffer a considerable loss.
So many crypto exchanges took the dramatic step to list their firms overseas to circumvent unfavorable laws in India. They always wanted to serve from India as a startup from India. But this decision of ban has made it difficult for them to operate their businesses in India anymore.
Indian government plans to ban is not sure that the draft bill will be passed in the present form the way it has been proposed and it may be amended after debate keeping various aspects in mind. Given the nature of the currency, it may not be easy to track that keeping and selling.
Neha Bawa is a Proud daughter to an Indian Army official, A Mother, and a wife, Graduate in Bachelors of Business Administration, She has also done Diploma in Aviation, Hospitality, and Tourism Management. She has vast experience as a blogger in the travel and tourism industry. Recently her interest in technology drove to write articles on Blockchain and Cryptocurrencies. Now she is an author and researcher for the cryptocurrency industry-related many articles.