According to Jimmy Song, there are two problems that prevent the technology from working: 'the oracle problem [and] the regulator problem'
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The post Government Committee Wants Total Ban on Cryptocurrencies in India written by Richard Kastelein appeared first on Blockchain News - Security and Utility Tokens, Tokenomics, Cryptoeconomics In a recent press release, the Indian government has officially announced that it has received a report on cryptocurrency regulation submitted the inter-ministerial committee which was set up by the Indian government in 2017. This Report and Draft Bill will now be examined in consultation with all the concerned Departments and Regulatory Authorities before the […] The post Government Committee Wants Total Ban on Cryptocurrencies in India written by Richard Kastelein appeared first on Blockchain News - Security and Utility Tokens, Tokenomics, Cryptoeconomics
This week, the inter-ministerial committee (IMC) of India officially recommended the imposition of what has been considered a blanket ban on crypto assets like bitcoin. According to Reuters, the panel led by finance secretary Subhash Chandra Garg has suggested a fine of $3.63 million and imprisonment for both individuals and businesses that engage in any crypto-related activity including mining, investing, transfers, and issuance. Is there any hope to bitcoin ban turnaround? The official report submitted by the IMC to the finance industry obtained by Inc42 explicitly stated that crypto-assets lack underlying intrinsic value, an argument critics have consistently brought upon to describe the speculative nature of the asset class since the inception of bitcoin in 2009. The document read: “There is no underlying intrinsic value of these private cryptocurrencies. These private cryptocurrencies lack all the attributes of a currency. There is no fixed nominal value of these private cryptocurrencies i.e. neither act as any store of value nor they are a medium of exchange. Since their inceptions, cryptocurrencies have demonstrated extreme fluctuations in their prices. Therefore, the Committee is of clear view that the private cryptocurrencies should not be allowed.” If the report is accepted by the finance ministry and the ban goes through, executives fear it would effectively put an end to the potent crypto market in India, restricting the ability of companies in dealing with crypto assets. Already, most leading crypto exchanges in India have closed operations in India and moved to other markets. Since April 2019, local reports indicated that due to regulatory uncertainty, funding for exchanges in India has started to dry up. Sathvik Vishwanath, CEO of Unocoin, told ET at the time: “We did ask people to leave last week, but our operations will continue for the foreseeable future. We have some amount of reserves to push through for the next couple of months and will wait for the Supreme Court’s verdict.” However, Nischal Shetty, the CEO of WazirX, a bitcoin exchange based in India, said that the ban on crypto has not been finalized yet and that there still is hope that the government could turn around the suggestion of the IMC. He added: “Crypto is not banned in India,” said Nischal Shetty. “Crypto Ban is a suggestion by the IMC report Section 1.1 of the report suggests the government should form a standing committee to revisit this Everyone loves talking the negatives but let’s understand this is not over yet.” Negative sentiment Upon the re-election of Prime Minister Narendra Modi in 2019, many analysts speculated that the government of India could take a tougher stance on the crypto market as the Modi administration has done throughout the past two years. Related: India Stalls Cryptocurrency Regulations, Uncertainty Continues Whether it is a blanket ban or strict restrictions, continued uncertainty in the crypto industry of India is likely to lead to a decline in confidence for investors and an impractical ecosystem for local startups. While industry executives have expressed hope in recent months, Sathvik Vishwanath, the co-founder of Unocoin, one of the biggest bitcoin exchanges in India, said that shall the ban go through as proposed by the IMC, it would result in the crypto sector of India significantly falling behind other leading markets. he said: “If the government decides to take such a drastic step then India will stand to lose out significantly on the technology front.” The post Crypto exchange exec says Bitcoin ban in India not final yet, is there any hope? appeared first on CryptoSlate.
The Inter-Ministerial Committee (IMC) released a report and a draft bill proposing a total ban on cryptocurrency and the harsh measures to be taken on any Indian citizen who holds, sells or buys cryptocurrency. Eventually, Is India Banning Cryptocurrency? This comes after months of confusion as the crypto community is still in the dark about India’s stance on bitcoin and cryptocurrency. On July 15th, an unverified document was published revealing a supposed draft bill titled “Banning of Cryptocurrency & Regulation of Official Digital Assets”. According to this Act, no person is allowed to handle cryptocurrency in any way. If a person defies this law, they are to face up to 10 years imprisonment or/and a hefty fine. However, on July 19th, the Finance Minister of State and Minister of Corporate Affairs, Anurag Thakur, addressed this bill saying currently there’s no law in India restricting the use of Cryptocurrencies as reported by Inc42. Presently, a report has already been drafted by the Inter-Ministerial Committee and is to be taken before the Indian Parliament for approval or dismissal. If a majority of the house members approve it, then it will be passed as a law. This proposal portrays cryptocurrency as “private cryptocurrencies” that should be banned. The report reads in part, “The Committee endorses the stand taken by the RBI to eliminate the interface of institutions regulated by the RBI from cryptocurrencies. The committee also recommends that all exchanges, people, trade and other financial system participants should be prohibited from dealing with cryptocurrencies. Accordingly, the committee has recommended a law banning the cryptocurrencies in India and criminalizing carrying on of any activities connected with cryptocurrencies in India.” Out Goes Crypto, In Comes Digital Rupee Although India is clearly at the forefront of banning cryptocurrency, the proposal doesn’t suggest a ban on crypto research. In fact, banks and financial institutions will still be allowed to use the distributed ledger technology (DLT) and blockchain technology. The Committee even proposed that the Central Bank of India should develop a “Digital Rupee” to be the sole cryptocurrency in India. Cryptocurrency Proponents Are Concerned On July 16th after the aforementioned unverified document proposing banning of cryptocurrency surfaced online, bitcoin enthusiast and Tezos investor Tim Draper bashed this move referring to the Indian government as “pathetic and corrupt”. Other crypto-proponents have viewed this recent report to ban cryptocurrency in India as a major cause for concern. Among these people is the founder of Morgan Creek Digital and a renowned crypto analyst, Anthony Pompliano. He expressed this in a tweet citing, “We need to pay attention to what is happening in India around cryptocurrency regulation. I’m willing to fly to meet with lawmakers and regulators if someone can get me a meeting. Who can help?” In response to this tweet, a veteran bitcoin investor, Peter McCormack tweeted saying, “I’ll join you on that fight” Finally, Charlie Shrem, founder of BitcoinFoundation.org and bitcoin investor replied saying he would help set up a meeting with the Indian regulators, pointing out that next month he was scheduled to have an unofficial meeting with an Indian MP. The post India’s Ban On Cryptocurrency: Several Crypto Proponents Ready To Hold Talks With Indian Regulators appeared first on ZyCrypto.