Putting a blanket ban on cryptocurrency in India is a difficult proposition, say experts
Cryptocurrency is again making headlines in India. The uncertainty surrounding the crypto industry in India is still very much in place and there is still no clarity about the scope and role of cryptocurrencies in India. As per experts, the government of India’s plan to ban cryptocurrencies is next to impossible and the plan to implement a blanket ban is just not possible given the nature of cryptocurrencies.
According to a report by Quartz India, following reports of a blanket ban on the use of cryptocurrencies, several market players weigh on the impossibility of a blanket ban. Analysts believe that the ban on cryptocurrencies in India is just not possible and it will be an uphill endeavor for the government.
Speaking on the matter, Nischal Shetty, CEO of WaziX said, “Even if the government decides to ban the possession, it will be just impossible to implement it.”
Shetty thinks that banning cryptocurrency exchanges will not eliminate private ownership of virtual currencies. According to Tanvi Ratna, crypto traders can by-pass a ban on local trade by moving their investments to foreign exchanges which will be difficult for the government to trace. Ratna said, “Since an Indian (citizen) is invested in a foreign exchange, it might become impossible for the government to trace his or her investments because most foreign exchanges also allow conversion to private coins which makes transactions untraceable.”
The government can block websites of private exchanges abroad but there’s still a possibility for local traders by using virtual private networks.
Better regulation is the need of the hour
Governments across the globe cite fraud and money laundering as the main reasons for their reluctance to adopt cryptocurrencies. ICO scams and other scams have marred the crypto landscape for quite some time and this has brought a bad name for the whole of crypto industry. Experts believe that banning cryptocurrencies drive them underground and make them more susceptible to frauds and other illicit activities.
Ausaf Ahmad, the CEO of Eleven01 is of the opinion that a regulation is the only way to combat illegal cryptocurrency activities. Earlier in the year, exchanges in India expressed their willingness to submit to government regulations.
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