Are Cryptocurrencies going to ban in India?

Bitcoin seems to be leading the global cryptocurrency market into a fresh wave of bullishness following the release of the lackluster US jobs report last Friday (September 3). 

world’s largest and most popular cryptocurrency, scaled $50,940 (roughly Rs. 37.23 lakhs) on the day. On Monday (September 6) afternoon, the price of the cryptocurrency touched $51,809.55 (roughly Rs 37.87 lakh). This is the highest climb for the crypto token since May when it had started declining after reaching a record high of $65,000 (roughly Rs 47.51 lakh). Over the past seven days, the cryptocurrency has risen 8 percent.

What is Cryptocurrency?

Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money that is carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database that describe specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. You store your cryptocurrency in a digital wallet.

Are Cryptocurrency secure?

Cryptocurrencies are usually built using blockchain technology. Blockchain describes the way transactions are recorded into “blocks” and time-stamped. It’s a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that’s hard for hackers to tamper with.

While securities are in place, that doesn’t mean cryptocurrencies are un-hackable. In fact, several high-dollar hacks have cost cryptocurrency startups heavily. Hackers hit Coincheck to the tune of $534 million and BitGrail for $195 million in 2018. That made them two of the biggest cryptocurrency hacks of 2018, according to Investopedia

How to invest in a cryptocurrency? And how to pick the best Crypto?

Are cryptocurrency going to ban in India?

There are concerns that the instrument is being used for different illegal activities like money laundering, terror funding

While the Supreme court had lifted the ban imposed by the RBI, The government had listed a bill on cryptocurrency to be introduced during the budget session of Parliament, but with the session cut short the legislation couldn’t make it

While there are fears that a ban will lead to investors’ money being locked into the cryptocurrencies, sources indicated that a six-month window will be open for investors to exit.

Are Cryptocurrency going to be termed as asset in India?

Former Reserve Bank of India (RBI) deputy governor, R Gandhi, believes that crypto can be used for payments towards economic activities, whether buying goods or services, once it has been termed as an asset or as a commodity.

“It is a valid legal activity,” Gandhi said at the inaugural session of India’s first-ever crypto-asset conference, HODL–2021, organized by the Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI).

During the session, Gulshan Rai, India’s first cyber security coordinator and advisory board member, BACC, said that regulators should look at cryptocurrencies in a democratized and sustainable manner. 

From the industry’s perspective, Sumit Gupta, CEO, CoinDCX said that blockchain technology, which enables the existence of cryptocurrency, can be even more transparent than the current fiat systems. “If we use the right tools and technology, then we can create an even better ecosystem than we currently have,” Gupta added.