The Government of India had earlier put a ban on financial institutions to deal in any transactions related to bitcoin and other cryptocurrencies earlier this year and later arrested Unocoin Co-founders for operating an unregistered Bitcoin ATM or Kiosk service in the country.
The Government of India had earlier appointed a panel for drafting the final report on the regulation on cryptocurrencies such as bitcoin. According to sources, the panel has successfully submitted the report to the government officials but the content in the report has been disclosed yet officially. According to the current rumors, India is going to make bitcoin and other cryptocurrencies totally illegal which means that trading, dealing or even holding crypto will be termed as illegal and the government shall take legal measures against the users of digital assets.
How it all started?
The story started from the mid of this year when the Reserve Bank of India officially declared that no financial institution will allow anyone to deal (buying or selling) in cryptocurrencies effective from the 5th of July 2018. Major cryptocurrency exchanges such as Zebpay and Unocoin had to shut down their operations which led to the rise of peer to peer trading in the country. People started to trade on platforms such as WazirX and Localbitcoins to trade amongst each other rather than a third party exchange that could provide their personal data to the government. This made crypto trading more anonymous and interesting to the public.
This was surely not what the Reserve Bank of India and the government wanted. Now that it has become more difficult for the government to track cryptocurrency transactions in the country. As a result, the government may be trying to correct the situation created in the country by totally illegalizing cryptocurrencies and cracking down bitcoin dealers in the country. A total ban would mean that no person or entity shall be allowed to trade, deal or even hold bitcoin or any other crypto asset.
What do you think about India illegalizing cryptocurrencies? Will it eradicate bitcoin from India or will it make Bitcoin sound more lucrative? Tell us your thoughts in the comments section below.