Cryptocurrency Ban Coming Soon In India?


The month of November is not auspicious for money. Remember demonetisation 5 years ago? We all lined up at the ATMs!

Now, the news of digital notebandi?

In this winter session (starting November 29th) a new bill regarding cryptocurrency will be tabeled. Talks of private crypto ban started.

If true, it will have repercussions for everybody. People are already selling and the crypto market is down.

Exchanges like WazirX crashed because of panic selling. The situation is not under control... but why?

What is private or public crypto? Can crypto even be banned?

Why do we tend to fear advanced technology? Will it help us in becoming superpower?

Let's talk about it in this video.

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The most controversial line in the now released notice is....

Now the confusion is what is this private cryptocurrency all about?

Many people are considering NASAQ definition like they do in America.

The currency that runs on open blockchain - and traceable to some extent - is called public crypto. Like Bitcoin, Ethereum.

Other cryptos use stealth mode to avoid getting traced or tracked.

Like Monero, Zcash.

But what if NASDAQ definition is not true? As per one 2019 government report...

Government approved committee stated that any crypto not issued by government will be considered private currency.

So, will bitcoin and ethereum survive - who knows? No clarification at least at the time of recording this video.

Sources claim that there won't be a ban and that cryptos are here to stay.

But people have already suffered losses due to the incoming news and policy indecision.

Remember in 2012 when UPA government imposed retrospective taxes after losing to Vodafone in the Supreme Court?

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What is retrospective tax? Suppose your landlord increases rent by 5000... But then goes on to collect increased rent for the past year.

This seriously dented the image of investment... foreign investors feared investing - who knows what new tax might be imposed here.

Ten years later, BJP government has abolished retrospective tax.

In 2017 BJP brought in GST, a unified tax structure.

However, the rates the filing procedure were so complicated that even now the GST structure is under continuous fine-tuning.

GST on Lassi versus GST on Chach is debatable.

Small businesses have suffered due to lack of clarity in GST.

Today, we have come to known about a possible crypto ban. But this policy decision should not be made with haste.

Maybe tomorrow they will say, no ban on crypto, sab changa si. But the confusion and prolonged policy indecision have caused investors to suffer.

Many sold their investments at lower price. Some might buy the dip.

The government had previously indicated to regulate the cryptocurrency market.

But what will come out of this new notice that will decide the future of crypto.. I will explain, but one thing is clear.

We might have slowed in adopting technology... while earlier Infosys, Wipro, TCS became tech-giants within a matter of few years.

We are already behind the rest of the world in new-age technologies like blockchain, which are technologies of tomorrow. So banning or over regulation won't be good.

So what is next for crypto?

Look, forget bitcoin as legal tender. You will have to pay in traditional way be it for a car or for a cup of coffee.

People expect that government will allow holding selected cryptocurrencies... as taxable commodity. Exchanges will also survive as a result, in this scenario.

This is win-win for both entities.

Although cryptocurrencies do seem like a bubble - there are many cryptocurrencies and their rates have no regulation.

Former RBI governor Raghuram Rajan calls it a classic bubble case. He believes that atmost 12 cryptocurrencies will remain. Others will collapse.

Maybe the government might not agree.... Maybe they can declare all activities around crypto illegal with a punishment of 10 years.

But experts feel it won't be right. If it is made illegal, exchanges like coinswitch, coindcx will have to shut operations.

These companies have billion dollar valuations. If made illegal, unemployment will rise, the companies will run to crypto friendly nations like Singapore.

Financial loss, job loss as well as brain drain.

Even in the worst case scenario, government should provide window to sell crypto assets. Hope that they don't make it illegal overnight.

So let the bill be presented and do not panic sell.

Our love-hate relation with crypto is quite old.

As you know, in 2018, crypto was banned by RBI. And why would a central bank welcome decentralized crypto anyway? Crypto gives power back to the people.

Maybe that's why bitcoin is not legal tender anywhere in the world. If it is legal tender in any country, write in the comments.

In 2020, the Supreme Court lifted the ban and the country fell in love with crypto. Exchanges became unicorns.

But what does 2021 have in store for cryptocurrency?

The government wants to check corrupt practices, but people have invested est. 6 lakh crore in crypto assets. So ban is not possible even if wanted.

Nigeria did try to ban crypto but now it is a crypto hub.

RBI might introduce a new currency, but before that why not resolve auto payment issues?

Even if tomorrow official clarification says- no ban incoming... we must still take policy decisions more efficiently and responsibly in the future

Investors are not lab rats that can be experimented on by shocking announcements and news.

Pre legislative consultation policy 2014 states that a bill should first be available in public domain for 30 days so that people can send suggestions.

But here, the winter session will begin within days and nobody knows what will happen.

Less factories and less investments due to this legislative uncertainty.

The issues with crypto should be resolved by collaborating with people. Banning is not the best option in digital age.

We can become superpower only by people's participation and adoption of technology.

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