Crypto ban could lead investors to move underground and obtain cryptos and trade illegally

The government released a list of 26 Bills, including the cryptocurrency Bill, to be tabled in the going winter session of Parliament. There have been widespread speculations of an imminent crypto ban in the Indian crypto circuits and trading circles.

There is widespread speculations of an imminent crypto ban circulating the crypto circuits and an atmosphere of fear and uncertainty looming in the markets. Finance Minister Nirmala Sitharaman issued a statement that there was no proposal to accept Bitcoin as a currency.

The current description of The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 seems to be getting ready to ban all but a few cryptocurrencies to promote blockchain technology and bring forth India’s official digital currency.

However, Industry experts, in their recommendation to the Parliamentary standing committee on November 16, told the government that the technology is here to stay and the best way forward would be to regulate them and partake in the disruptive innovation overtaking the globe.

There is high grade of investments have been in the country into crypto and investment worth hundreds of crores of rupees being driven into the crypto economy by the 15 to 20 million Indian crypto investors .

Experts feel that the speculated crypto ban if imposed could defeat its purpose as it would cause investors - big or small - to move underground and obtain cryptos and trade in them illegally.

Moreover, the P2P transactions do not fall under any legal ambit and hence, decentralised exchanges would continue to thrive regardless of the ban. Banning cryptos would not only prove a technological challenge for the government but also mean huge capital funds moving out of the country.

BACC (Blockchain and Crypto Assets Council) released a statement reiterating the futility of the ban, “Blanket ban on cryptocurrencies will encourage non-state players, thereby leading to more unlawful usage of such currencies.”