India ’s verdict on Ban on cryptocurrency.
August 16, 2018 7:27 am,
India: The long-awaited ban regulation on the digital currency is likely to come to an end by the end of the year 2018. The government has almost finish formulating the regulations for trading and policy framework is ready once the current committee submits the report.
While the country is still not clear about its opinion about the virtual market and hasn’t been accepted as the legal payment, the Finance Minister has also not mentioned it as illegal. Although the PM Narendra Modi is all for adopting the cryptocurrency and Blockchain, it is not sure to what extent is it going to be accepted.
The key issue faced here is the setting up of regulations for blockchain and cryptocurrency separately. The blockchain is the decentralized ledger for transactions in cryptocurrency. This basically is a bookkeeping platform owned by no one by can be accessed by anyone on the internet.
The dilemma: Cryptocurrency or Blockchain?
The Modi government has been looking at cryptocurrency from April 2017 when setting up the panel which included the Finance ministry and RBI officials along with SEBI.
The RBI has issued warns like “potential economic, financial, operational, legal, customer protection and security related risks” associated with dealing with Bitcoins.
The development of a framework is taking time due to the advanced technology used. Blockchain alone is not enough and thus cryptocurrency has to also be regulated. This has been debated since the start of regulation. And still open for debate.
The other issues being that almost $100 billion was wiped off and hackers stole around $530 million. This has led to uncertainty and a volatile market.
Another major concern is security. Hackers find it easiest to wipe off some amount and use it in any way they want which has led to the country still being skeptical about this virtual currency. While some countries have banned cryptocurrency, Japan has been very liberal with their use.