Investors cash out as India is rumored to ban crypto this December!
There is something new happening in India every day as far as the cryptocurrency bill is concerned. Some new information comes out. Of course, none of this "information" is correct till one gets to see the actual bill. During the last few days, speculation has been rife about not banning cryptocurrencies but putting a large amount of taxes on any gains/transactions. Today, speculation is that while there may not be a ban, but what will be allowed will most like prevent most Indians to trade cryptocurrencies. Let me get into the details later on. What is worse is that this new news has led to a lot of investors cashing out of their crypto investments.
Trading volumed jumped nearly 50% after these rumours came out and a lot of selling pressure was witnessed on exchanges.
Here is a tweet from the founder of one of India's largest crypto exchanges - WazirX
He mentions the description hasn't changed much. Well what that may imply according to many is that the government will ban all private cryptocurrency transactions and set up a framework for India's own CBDC. 😂 The description of the bill that will be tabled in the parliament as per official sources is as follows -
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was listed as a frame rule for cryptocurrencies aimed at prohibiting private coins while providing a framework for the creation of an official digital currency to be issued by the Reserve Bank of India.
What a shit show it will be if the government bans cryptocurrency! Anyway, even if there isn't a ban, there are reports that the government will allow trading from GIFT city. I have to share this tweet before I can explain further -
So GIFT city is a failure of EPIC proportions. Back when our visionary PM was a CM, he had this vision to create a financial trading hub like Hong Kong in India, in the state of Gujarat. Without understanding what makes Hong Kong/Singapore/Shanghai powerful centers for Finance, he decided to pour money into this concept. It is basically an offshore destination in India within the borders of the country. Indian citizens cannot open bank accounts in GIFT city. Only financial companies that want to run trading operations for international investors can operate there. Only foreign investors that want to invest in India can open bank accounts.
Based on the above tweet from Tanvi Ratna, firstly the government will not come out with proper legislation. I don't see a point in that. I think if a bill will be introduced, it will be complete for it to become a law, based on which courts can decide in case there is a legal matter.
Second, if exchanges are pushed out to GIFT city, then that is akin to India banning cryptocurrencies. However, a ban is pointless. P2P mediums will flourish and WazirX was anyway doing that when there was a ban on crypto transactions by RBI. The whole thread of Tanvi Ratna is so mind-blowingly stupid - non-rupee crypto, crypto routed through GIFT city. 🤦♂️
Anyway, I have always made it a point to highlight the risk of crypto investing in India. One cannot trust bureaucrats to understand anything about this tech and even if they do, they have to explain it to politicians, many of them don't even have proper education. While the bill will be out in the flesh soon, ominous signs are there and are growing bigger by the day in my opinion. Your money will be safe because Bitcoin will exist with or without India's approval. The risk is what the government can do to an investor.
These are delicate dates in addition to the fake New that are the order of the day, we will wait for the results next week and we will see what happens.
Thank you for writing
Yes, will have to see the actual bill but signs aren't good.
Wow. What a terrible rumour, I'm sure that would be very terrible for millions of people who have managed to make the crypto world a way of life parallel to their other jobs or income.
I put myself in everyone's shoes and think that I don't want to imagine this happening in Venezuela.
Yes, if the rumour turns out to be true then it will be a terrible blow for the crypto community in the country. No country should do this. Although if one looks at Nigeria, the country has a ban but the market is flourishing there.
Greetings @ karamyog
Banning cryptocurrencies in India would bring as a consequence and backwardness to their hard hit economy ,I am sure a favorable solution will be reached for all , Now of reaching the ban when the fear passes the crypto world is going to increase much more as this is inevitable worldwide
thank you very much for sharing
Though it might not look like it now due to some sort of stupid government policy but one thing I believed is that crypto is here to stay in india
Yeah, there was a ban earlier as well. However, p2p channels will exist in case of a ban. The problem is that this time a ban may be part of a law. Let's see.