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Banning of Crypto could lead to illegal trade

The government released a list of 26 Bills, including the cryptocurrency Bill, to be tabled in the coming winter session of Parliament. There have been widespread speculations of an imminent crypto ban in the Indian crypto circuits and trading circles. There is a high grade of investments that have been in the country into crypto and investment worth hundreds of crores of rupees being driven into the crypto economy by the 15 to 20 million Indian crypto investors. Banning cryptos would not only prove a technological challenge for the government but also mean huge capital funds moving out of the country. A cabinet note says, the government will regulate cryptocurrencies in the country, rather than imposing a ban on their use. The note reportedly states that cryptocurrency will not be recognised as legal currency, and describes the currency as “crypto assets”. These assets will be regulated by India’s market watchdog, the Securities and Exchange Board of India (SEBI), and citizens will be required to declare their assets and refrain from keeping them on exchanges outside the country. Individuals holding crypto will be given time to transfer their assets once the bill becomes law. Failing to transfer within the timeframe will lead to financial penalties.

Can India which has ever been at the forefront of changing the digital landscape afford to miss trillions of dollars worth of global opportunity? The industry doesn’t feel so. From the threat of a blanket ban, the industry has witnessed several positive developments, the crypto awareness in the country is rising, and a full-fledged statutory Bill is underway. Unlike China, no democratic country can afford to ban cryptocurrencies including India. Developed nations like the US, the UK, Japan, Australia, etc., have regulations and require exchanges to obtain a license before procuring business in the crypto markets. T.