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There has been a lot of pandemonium in India’s crypto community following the legislators’ attempt to pass an anti-crypto bill that strongly prevents anyone from having any part in cryptocurrency. This includes holding, selling, buying, transferring, and exchanging any type of digital asset.
Like most countries, the Indian government is scared of the detrimental effect this new class of virtual assets brings to the table. Although famed for its ease and money-making potential among others, regulators across the world are yet perturbed how this form of currency, in the wrong hands, could affect the economy.
The just-concluded crypto winter made the case worse, causing India’s government to take a rather drastic step against virtual assets.
However, the recent proposed bill to ban cryptocurrency has met a ton of criticism. While it is yet to be passed into law, members of India’s crypto community seem to be perplexed about what the future holds for them. Some crypto exchanges have chosen to play it safe by registering their business outside of the country.
With a possible fine of about 10 years imprisonment, of course, every Indian crypto investor is walking on eggshell.
You will recall that the Indian government moved to create an official crypto coin in 2017 but slammed the brakes on the project indefinitely. Till date, we are yer to get any information on the project and whether or not the anti-crypto bill will be scrapped or passed into law. If it makes it into the nation’s law, then, India will be the first country to completely shut out an emerging technology this big.
Commenting on the absurd rules contained in the bill, Jaideep Reddy from Nishith Desai Associates stated that the proposed bill is too extreme for an emerging technology”
“In our view, the draft Bill takes an extreme position since it proposes to criminalize dealing with an asset in which lakhs of people have invested as a legitimate economic avenue. Jurisdictions like the U.S., E.U. and Japan have found ways to regulate crypto-asset activity to mitigate the risks and promote the benefits. This has also been recommended by the G20 and the Financial Action Task Force, the global anti-money-laundering watchdog.”
Furthermore, he pinpointed a certain loophole in the bill, slamming it for not providing an exit for existing investors. What would they do with their assets?
Crypto Firms Will Leave the Nation
In addition to the millions of Indians that would be robbed of their means of their legal wealth and possibly means of livelihood, the tax sector will also feel the blow as these millions of investors currently declare their holdings and pay their tax accordingly. That would be a great loss for the country at large.
Another negative impact of this drastic law would be seen in the development of the country. Crypto exchanges and other blockchain enterprises are already packing up to establish in a more accommodating country. This will definitely cause a decline in the revenue and overall development of India.
We strongly believe and hope that this bill will not be passed into law, as there are too much at stake here. And if at all, it would be reconstructed to give a little room for the crypto market.