HOW IS IT WITH THE CURRENT CRYPTO BAN IN INDIA?

in Project HOPE3 years ago (edited)

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INTRODUCTION

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This time around my publication will be very short and I'm planning to use my voting power to reward those of you who are willing to invest their time and drop a valuable comment.

Since the topic will be related strictly to India - all comments from Indian users are greatly welcomed.

IS INDIA BANNING CRYPTO ? OR IS INDIA NOT DOING IT?

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I must admit that it's becoming quite a challenging topic to follow. Especially since not many foreign media outlets seem to be interested in this particular market and at the end of the day it's hard to actually figure out how things are.

Can regular people invest in crypto, trade it, withdraw it to FIAT and pay taxes from capital gain tax?

Would you consider the current approach to Crypto by the Indian government and central banks to be hostile? Neutral or perhaps positive?

Do Indian authorities see it as a threat or an opportunity? What's your impression?

Share your view and your knowledge with me and EARN 10-15k SP upvote on your comment.

CRYPO in Sri Lanka?

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I'm fully aware that India and Sri Lanka should not be treated as one country. However, I'm somehow very curious if anyone reading this post has any reliable information about the way Sri Lankan authorities are approaching crypto markets?

Cheers, @crypto.piotr
@project.hope founder
check out our community: https://steemit.com/trending/hive-175254

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@crypto.piotr as per my thinking and experience. India cannot ban crypto currency market. It is very difficult to do that as we have seen millions of individuals have invested in Crypto market and currently it is a billion dollars investment in total.

They cannot just come and say we have ban crypto. It's been 2016 we are hearing it is going to be ban but it's not 2021.

I can understand they can apply tax and people are ready to pay the taxes on income made.

Currently indianeedcrypto was trending in twitter day before yesterday. This show the unity and power of crypto market in India.

 3 years ago 

Thanks for dropping by and sharing your thoughts with me @adityajainxds
(comment upvoted already).

India cannot ban crypto currency market.

Surely they cannot succced in banning this market. But it didn't seem to stop them from trying and spreading FUD all the time.

My question is: what's their current stand towards this issue?

Because there is a lack of clarity from the government, I am hesitant to trade crypto in India. The rules in India can be extremely draconian when it comes to policy and dealing with government authorities is not easy and not worth one's time. I don't want to get into trouble at any point in the future for buying something that can be termed illegal. India has numerous examples of implementing policy retrospectively, so they can call any transaction done in India at any point in time illegal.

That said, I think the government for now has changed its stance on crypto from negative to neutral. There are technocrats who have spoken positively about crypto, but then again they could be talking about private blockchains. Unless one sees how good or bad India's regulatory framework is, assessing govt. stance is difficult. There is a body that is working on drafting crypto regulations, so there isn't an outright ban. There would not be an outright ban either because if the west is adopting it, then India will also adopt it. I truly believe that India is waiting to see what happens in the US and Europe and they will draft regulations much in line with those in the aforementioned economies.

The central bank and regulator have no authority over this space unless there laws that tell the regulator what and how to regulate. Therefore RBI has clearly stated that none of its old notifications can be used by banks for anything crypto-related. However, it has said that banks can try and ensure adherence to all other regulations under which banks are governed. This is extremely negative because it is cost-intensive and banks have no technology to ensure the prevention of money laundering using crypto or any violation of the foreign exchange management act in a crypto remittance transaction.

Any tool that allows people to transact in monetary terms, that is not under government watch will be treated as a threat. Crypto won't be seen positively in India. However, any positive adoption from the west may force India to look at crypto positively. Then again, things happen so slowly over here that our crypto regulation may come 10 years after that of the west. Till then crypto in India will be an uncertain space. I have no hopes from Indian authorities to understand bitcoin/crypto.

 3 years ago 

Hi @karamyog
Thanks for sharing your feedback with me
(comment upvoted already).

I don't want to get into trouble at any point in the future for buying something that can be termed illegal

What about your STEEM and HIVE tokens? do you think owning it may get you in trouble as well?

That said, I think the government for now has changed its stance on crypto from negative to neutral.

Great to hear it. I believe that many wealthy people will continue putting pressure on Indian authorities to accept crypto as a store of value.

Cheers, Piotr

I am not buying or selling hive or steem. I am only earning it. and of course, I can trace and track every crypto investment I have ever made. Also, I will pay taxes on anything I sell. else, I will figure out a way to sell these crypto-assets in some other way in the future.

i think the final regulation will not be so draconian that crypto is considered illegal. moreover, wealthy people in India may or may not need an alternate source of wealth preservation. they have land, gold, and numerous ways of storing wealth. inflation affects the poor disproportionately.

Hello friend @crypto.piotr

This is a topic that requires a wide debate, since many of us who generate content on the steemit blockchain are rewarded with cryptocurrency, and that cryptocurrency in some way or another must have a sense of trustworthiness by governments so that we the users who are the ones who own them can change it to fiat money quietly, or otherwise we can use that cryptocurrency as a form of payment in some stores.

In reality, government regulations is what worries me the least, whether it is China or India that apply prohibition mechanisms in cryptocurrency trading, what will really prevail over time is the great utility of cryptocurrency.

The simple fact that cryptocurrency is decentralized and that anyone can invest in it without it being monopolized by the central banks of any country is what really makes the use and trade of cryptocurrencies globally attractive.

We must be smart and think about the following:

"When man only transported himself by walking, the technology of transporting himself on horseback emerged, when the first horses began to be sold perhaps it did not seem a profitable business, since the first people had accidents on those horses, which is why other people saw such technology of horse transportation as something risky, however as time went by horse transportation became safer and the business of selling horses was profitable."

"Then technology keeps advancing and automobiles came out, surely the same thing happened, the first people who bought cars had accidents, the other people just did not buy cars, so the business of selling cars at the beginning must have been quite bad, however by today we can see how the car business is one of the most profitable today."

If we take into account the two examples explained above, the business of buying, selling and trading of cryptocurrencies is just being born, i.e. it is still very young, which is why we should not panic about the regulations and prohibitions by the governments of the countries, for surely it will not only be India and China who will want to prohibit the marketing of cryptocurrencies, surely as time goes by there will be many more.

What should really worry us is that governments do not really try to ban cryptocurrency trading, because if they do not ban it is because the cryptocurrency would not have a sense of autonomy and sovereignty in citizens around the world, while they continue to prohibit it is because the issue of cryptocurrency is going excellently well.

 3 years ago 

Wow @carlos84

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

"When man only transported himself by walking, the technology of transporting himself on horseback emerged, when the first horses began to be sold perhaps it did not seem a profitable business, since the first people had accidents on those horses, which is why other people saw such technology of horse transportation as something risky, however as time went by horse transportation became safer and the business of selling horses was profitable."

This example would make more sense if you would stick to story about car instead of horse :)
People used to ride horses even before money has been introduced.

Cheers, Piotr

My own view..
The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade cryptocurrencie or provide services to assist anyone in dealing with or settling them. I think that was the genesis of the whole issue

Then, sometime in 2019, a government group proposed banning cryptocurrencies in India, with anyone dealing in digital currencies facing a prison sentence or severe penalties. The Supreme Court overturned this in 2020, allowing banks to process cryptocurrency transactions.

Recently, Governor Shaktikanta of the Reserve Bank of India (RBI) has stated that the RBI is working on a digital currency.

Looking at all this things, I feel there is something going on underneath within the government is is unclear to the public. They are just trying to bring up something to back their idea. But I don't think India will really be banning cryptocurrency.

 3 years ago 

I greatly appreciate your valuable comment @benie111
(upvoted already).

Cheers, Piotr

Greetings @ crypto.piotr, although I am not an inhabitant of India or Sri Lanka, I dare to express my opinion in a more globalized context.

I understand that not only in the countries mentioned above but worldwide, especially in countries with few democratic, authoritarian regimes or whose economy is in the hands of few people, cryptocurrencies will always represent a threat, the reason: decentralization.

Most fiat currencies are issued, regulated, and controlled by the central banks of each country, which in turn usually establish "pacts" with the main commercial banks (universal banks) in which both the government and the bankers can make operations that benefit both.

Although money was invented as a tool to facilitate merchant exchanges between individuals and to have a store of value (functions that many cryptocurrencies currently fulfill), the monetary policy uses it precisely to regulate how internal markets develop, always in the benefit of government plans and often undermining the interests of individuals.

Do you think it is a coincidence that it is precisely in a country like China where the use of cryptocurrencies has found the greatest amount of rejection and prohibitions? Not to mention those who, to be "more open", have accepted its use but have bills to strictly regulate them through the application of abusive taxes.

I believe that many governments know that the blockchain offers many and varied development opportunities in different areas: database management, information security, logistics operations, etc. But their decentralization represents a serious threat to them.

Greetings to all

 3 years ago 

Wow @karupanocitizen

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

Do you think it is a coincidence that it is precisely in a country like China where the use of cryptocurrencies has found the greatest amount of rejection and prohibitions?

Good question. Why China?

Cheers, Piotr

According to what I read written by Hellen Park in https://es.cointelegraph.com/news/indian-central-bank-clarifies-regulations-as-local-banks-shun-crypto Link where you will find information related to what is happening right now in India with cryptocurrencies all the decision of both the government and the central bank of India is related to the allegations about the use of cryptoassets as a mechanism of money laundering, in this case began a campaign to prohibit the use and circulation of coins in India, however this has generated a framework of discomfort and uncertainty regarding the issue, because, In this case the use of foreign cryptoassets is prohibited but the government proposes the creation of its own digital currency that circulates only in India, something that causes confusion, i.e. what is being prohibited is actually the foreign investment and not the cryptoassets if we think a little about the whole matter, i.e. they want to tell investors that they must rely on a cryptocurrency that only serves in India and that they cannot use elsewhere and that additional when they want to withdraw their investment or invest in another cryptoasset, how will it be done if the market is limited. Another aspect that draws attention is a news published by Greg Thomson in the same news portal that I quoted at the beginning of the post where he says that India will use blockchain technology for parliamentary elections in his country, ie voters will be able to export ballots to and from another province, so where are we left with India and its decision to ban cryptocurrencies. Now my question would be what is actually being banned?

 3 years ago 

Wow @emimoron

what an amazing comment. You're not from India so I was quite surprised to see your feedback :)
(comment upvoted already)

Now my question would be what is actually being banned?
you've lost me here ...

ps. consider using "enter" from time to time. It's quite difficult to read long blocks of text.

Cheers, Piotr

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Thanks for coming up with this topic. Wil try not to sugarcoat it.

In Short-Term :

We certainly cannot be sure about will it be banned or not. Present government is in habit of taking knee-jerk decisions. There was a lot of backfire for some recent policy decisions but nothing was reverted.

If they see a threat to Indian economy, they may well ban it, quiet possible.
Today, India is pre-occupied with many other major challenges and attention is towards those, Covid situation being one.
Discussion on crypto will definitely come up once Covid situation normalizes.

Crypto can be used for other ill purposes too so in near future we may see some restriction for sure.

A country which can ban PUB-G and more recently asked all social media giants to follow policies or face ban, can do anything.

But in Long-Term:

Once the initial hurdles and clarity is attained, India will easy the crypto related policies.
1.4 billion population is a huge number, it is very crucial that India adopts crypto.
Looking at the bigger picture, many investments have started following, new exchanges are coming up.
As per recent RBIs instruction, banks were asked not mislead customers by showing old notifications regarding crypto ban.
Lets hope for the best.

 3 years ago 

I greatly appreciate your valuable comment @knowledgefruit
(upvoted already).

Cheers, Piotr

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