Indian government stepped up cryptocurrency review

nBankruptcy commentary: Like the U.S. government, the Indian government said it will ban encryption currency as a means of payment and will strictly regulate the trading of cryptocurrencies, especially the use of cryptocurrencies in the investigation of illegal transactions. The bitcoin community in India, which was misled by the statement, was once panicked and the currency dropped, but soon rebounded. As the market itself is not yet mature, policy tends to easily affect the market. However, India’s move at least shows that it will not ban currency encryption.n
nTranslation: Annie_Xun
A senior official at the Ministry of Finance revealed that the government is making steps to determine the illegal status of cryptocurrency payments.n
News as of December 2017, Indian law enforcement agencies investigating money laundering, fraud and tax avoidance issues related to the digital money market. Now the department confirms that the country will at the same time be formulated for the future supervision of cryptocurrency regulation.n
In an interview with CNBC TV18, S.C. Garg, secretary of the Indian Economic Affairs, revealed that the government is in the process of preparing the commission to draft a cryptocurrency report and is expected to publish it by the end of the fiscal year.n
n”The government will step by step to establish its status as an illegal payment system.”n
nThe official continues to imply that the future direction of regulation is to encrypt money and encrypt asset transactions.n
Leadership Committee Garg said:n
n”We hope that the committee will finalize its proposal during the fiscal year, of course, regulators will also participate.”n
nIn announcing the government’s budget, Indian Finance Minister Arun Jaitley told the parliament that the government will implement a zero-tolerance policy on the use of cryptocurrencies for illegal transactions.n
Interestingly, Jaitley’s speech caused agitation in the bitcoin community in India that misunderstood him, thinking the government wants to ban encryption of currency. After his speech on TV, bitcoin prices plunged, but quickly rebounded.n
The use of cryptocurrencies for terrorism and smuggling has been a topic for many years and may have existed as long as the market itself. However, there is no clear evidence of the link between the two, except for the Silk Road scandal that uses bitcoin as a primary payment tool for drug and arms transactions. Despite this fact, however, it must be noted that there are legitimate uses for cryptocurrencies, including bitcoin.n
What is clear is that India does not want to accept cryptocurrencies as another form of payment, but rather as a new asset class. This has happened in the past, such as the U.S. government. After all, allowing cryptocurrencies to be paid will allow people to completely avoid the legal currency issued by the state.n
Although the bitcoin white paper shows its original intention is to replace cash. However, it appears that all countries are only willing to use it as a digital means of storing value, similar to gold. Precious metal still can not become legal currency.n
Zebpay, one of India’s most popular cryptocurrency exchange, released a blog on the event, saying the results were quite positive and that the Exchange will actively comply with any regulations set by the Blockchain and Cryptocurrency Committee.n

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