India’s finance minister said the government wants to ban the use of cryptocurrencies locally

nBankruptcy comment: Although India is also one of the world’s major cryptocurrency markets, its government has long been unpopular with such new things and has repeatedly issued statements stressing its risks and harms. Recently, India’s finance minister again said in his speech that the government wants to prohibit the trading and use of cryptocurrencies in India. However, given that the government has never taken any real measures to constrain and standardize this market, it is hard to imagine any substantive regulatory work triggered by the Treasury’s remarks.n
nTranslation: Inan
In a speech to his annual budget this Thursday, India’s finance minister, Arun Jaitley, reiterated the government’s intention to ban the use of cryptocurrencies in India. He pointed out that the Indian government does not think digital currency is legal currency.n
According to Indian media LiveMint reports, he said in his speech:n
n”The government does not consider the cryptocurrencies to be legal or monetary and will take all measures to curb the use of these cryptographic assets in the financing of illicit activities or any payment system processes.”n
nHowever, Janetley did not say it was forbidden to trade bitcoins and other cryptocurrencies. In fact, he said the Indian government will encourage the use of blockchain technology in traditional payment systems, indicating that the government actually sees the value behind cryptocurrencies.n

India is one of the largest markets for Bitcoin transactions, with one in 10 Bitcoin transactions in the world occurring in India.n
However, the Indian government has long been a passive attitude toward cryptocurrencies and was compared to a Ponzi scheme in a December 2017 circular.n
n”Virtual currencies have no inherent value and are not supported by any asset, so bitcoin and other virtual currencies are nothing more than a speculative move that causes their prices to skyrocket and fluctuate sharply, and there is a real risk of a big bubble in the investment bubble, The characteristics of Ponzi schemes can cause investors, especially retail investors, to lose their hard-earned money, and consumers need to be vigilant and take great care to avoid falling into this Ponzi scheme. “n
nHowever, in addition to issuing such an official statement, the government has taken almost no other steps to really curb the transaction and use of cryptocurrencies in India.n
Since December 2013, the Reserve Bank of India has made three warnings to cryptocurrencies investors that they are putting themselves at risk of financial, operational and legal risks and their own security is under threat. Other Indian banks have also temporarily closed accounts in India’s major cryptocurrency exchange.n
Nevertheless, hundreds of thousands of new accounts appear each month on these exchanges. Therefore, it seems unlikely that this statement by Jautley had a significant impact, at least for now.n

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