News of Developments Toward Crypto Ban in India is Real
Yesterday, when Money Control published a news titled
(which was updated again today)
it did create some panic and shock waves in Indian crypto community.
Is that some FUD?
Observing the panic reactions from people, most of the Indian crypto influencers were quick to brush this news off, terming it as another FUD.
I recollect from past that these were the same people who were terming every news from mainstream media as FUD, questioning their anonymous sources. But we all came to know about the truth when we saw the copy of draconian draft bill. It was all real!
But isn't this news a FUD?
FUD, oh yeah!
Fear: Yes this news instigate fear in crypto community. Every authentic news of ban will do the same.
Uncertainty: Yes, there is still a good degree of uncertainty whether the ban will be implemented or not in the end.
Doubt: Well, I don't have any doubt about the veracity of this news. But there is a doubt on the actual implementation of ban.
So yeah, it can be termed as FUD.
But it's not a rumour.
This is not the first time MoneyControl has published such a news. It did last month on June 12 too along with Economic times' report. ET report stated:
A note has been moved (by the finance ministry) for inter-ministerial consultations,
Money Control reported today:
We are working on it. After inter-ministerial consultations, it (the note) would be presented to the cabinet for approval. Once Parliament resumes for the session, we are hoping to get it ratified
The Truth
The facts that the cabinet note was moved for inter-ministerial consultation and that it is based on the same draconian draft bill of 2019 submitted by the committee headed by S.C. Garg is also verified by the following RTI response from Department of Economic Affairs:
This RTI reply is dated 13th July, 2020 and was in response to the query filed by Advocate Mohammad Danish of Crypto Kanoon after the news published in mainstream media.
Watch this video for an analysis of this RTI response by Crypto Kanoon:
So there shouldn't be an iota of doubt left about the trust worthiness of media news.
But our over-optimistic crypto community always want to term these news as FUD.
Of course, we don't know what the final outcome will be but we can't deny the formal process for the Bill to take the shape of law is in progress. After it's passed by the cabinet, it may be put up in the Parliament in the upcoming session or may be later. Once passed by Parliament, it will be notified as Act through Gazette publication.
So I'd like to say that there is still quite a time and several steps to be followed before it is turned into a law. However, we shouldn't deny the fact that it is still being pursued by the Government.
Therefore, we should consider all our actions and investments in crypto in the light of these developments. Just living in denial and suddenly waking up one day to a shocking news won't be a nice thing. Better be prepared for all possibilities.
Invest wisely with full knowledge of the developments!.
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i got no clue, but interesting
Well this would be a big drawback for crypto adoption in India which actually seems to pick up if I am not mistaking.
Let's hope this proposal will be burried somewhere.
Yeah, within past 4-5 months, after the Supreme Court ruled against the RBI ban, we have seen an increase in crypto userbase of about four fold.
It's technically impossible to put a blanket ban and enforce it to all of crypto industry & its users. So some users will remain active in spite of the ban (in case it happens). So more users in this phase means there will be a lot more users even after the possible ban. Only these strong hands will bring the change and revolutionize our human society.
Yes, it is quite true that Crypto may get banned in India in the foreseeable future but how that Ban is enforced and if it is enforced is something to consider. I am pretty sure there are some Government Officials with decent brains to know that you cannot completely Ban Crypto just by writing a Bill.
The Government is the one set to lose with this, firstly they will lose the tax money they were getting from the exchanges as well as the citizens. Secondly, the people who still wanna hold crypto will most definitely hold crypto and the government will have a very hard time tracking them. I can say this for sure as the last time they tried to trace such transactions a lot of normal users had their Bank accounts frozen in suspect of dealing with Crypto.
If I have to add one thing that we as users could lose with a Ban will be the Liquidity factor. We won't be able to simply cashout our Crypto whenever we like. So yeah that is gonna be a bummer.
Yeah, if not banned, it could be limited by strict regulations. However, that may be softened gradually, step by step over a long period of time. But I don't think Government will lose any tax revenue from legitimate citizens because of this. If not crypto, people will invest in conventional legimtimate avenues like bullions, stock, mutual funds, banks etc. All these are taxable. People who would work in crypto industry will find work in other legitimate industries and pay their taxes. Thus governemnt wants to safeguard banks, financial instituitions and traditional industries by stopping people to divert their money into crypto. Otherwise, it's fiat will lose its charm and value :)
However, Government will lose tax revenue due to illicit investments in crypto. But that's the same story in many fields. The magnitude of black money in our economy is no secret. It always will run in parallel, I guess.
You're right about the lose in liquidity in a scenario of ban, when it comes to conversion to INR. But personally, I'm hoping that in long run, I may not have to convert my crypto into fiat. I won't ever like to convert my crypto into fiat. Hope, we'll be able to create such a world soon!
Thanks for sharing your opinion on this burning issue!