Is it really conceivable in India to outright prohibit cryptocurrency? Check out what other countries have done.

Is it really conceivable in India to outright prohibit cryptocurrency? Check out what other countries have done.

According to crypto specialists, it will be impossible to entirely outlaw cryptocurrency. The government, on the other hand, may prohibit or restrict crypto trading and its use as a medium of exchange or payment.

Cryptocurrency Bill 2021: During the current Winter Session of Parliament, the Central Government will introduce the Cryptocurrency and Regulation of Official Digital Currency Bill 2021.

In the past, there have been rumors that the Indian government may outright ban cryptocurrencies.

Official sources have lately suggested that the government may authorize trading and investing in cryptocurrencies with specific limits, according to multiple publications.

“Exchanges in specific countries may be prohibited from operating. A comprehensive ban on cryptocurrency, on the other hand, would never be practicable.

Decentralized exchanges are not governed by any government or organization.

These are driven by developer and crypto phile communities. As a result, despite a blanket ban on cryptocurrencies for transactional reasons, a comprehensive ban on crypto would be impossible,” Patel concluded.

While the crypto industry awaits the details of the Cryptocurrency Bill 2021, now is a good moment to consider how other governments have attempted to regulate or outlaw cryptocurrency.

“Exchanges in specific countries may be prohibited from operating. A comprehensive ban on cryptocurrency, on the other hand, would never be practicable.

Decentralized exchanges are not governed by any government or organization. These are driven by developer and crypto phile communities.

As a result, despite a blanket ban on cryptocurrencies for transactional reasons, a comprehensive ban on crypto would be impossible,” Patel concluded.

While the crypto industry awaits the details of the Cryptocurrency Bill 2021, now is a good moment to consider how other governments have attempted to regulate or outlaw cryptocurrency.

“Cryptocurrencies were not previously seen to pose a threat to financial stability, but rising volumes have alarmed central banks throughout the world.”

For the first time, the IMF highlighted crypto-asset expansion as one of the major risks to global financial stability in October 2021.

“However, there are few worldwide examples for managing such risks,” Policy 4.0, an emerging technology think tank, recently stated in research.

The paper outlined how attempts to ban or regulate cryptocurrency in various nations had fared. Look at this:

Turkey

Turkey attempted but failed, to prohibit cryptocurrency last year due to rising inflation. “In April 2020, Turkey’s inflation reached a high of over 17%, while bitcoin was on a tear.”

As commodities ranging from kebabs to gold began to be offered for bitcoin payments, cryptocurrency exchanges in the country saw a 600 percent surge in traffic, moving close to $1-$2 billion each day.

The Turkish central bank outlawed the usage of cryptocurrency as a form of payment on April 30, 2020.

However, full legislation has yet to be enacted, and the effectiveness of a ban is being debated. The article stated that “cryptocurrency trading continues in Turkey.”

Nigeria

Nigeria’s central bank banned banks from enabling cryptocurrency transactions in February of this year. They were also forced to terminate the accounts of Nigerians who used cryptocurrency.

“Despite the restriction, crypto has thrived in Nigeria as users avoid centralized exchanges and turn to peer-to-peer trading channels,” according to the paper.

According to Chain analysis, Nigerians transacted $2.4 billion in bitcoin in May 2021, making it the world’s second-largest Bitcoin market.

South Korea

The Financial Services Commission of South Korea imposed stringent rules for linking bank and trading accounts, and ICOs were outlawed in 2021.

“New regulation has been tough for banks to comply with,” the newspaper stated, adding that “crypto exchanges in Korea that are facing the risk of closing down are considering suing the government.

” Individual purchases of foreign currency are capped at $50,000 per year, and crypto transactions are subject to capital controls.

However, in the absence of compliant exchanges and an abundance of Defi channels, laws have proven impossible to implement.”

China

Since 2013, China has attempted to outlaw cryptocurrency. It established a blanket bank of all cryptocurrency-related services, including mining, this year.

The Policy 4.0 report, on the other hand, suggests that unlawful crypto activities have increased in the country.

In terms of the biggest volume of cryptocurrencies from unlawful addresses in 2020, China was placed third.

Despite the country’s ban on crypto trading in 2020, China has the biggest number of Defi users in the world last year.

China took part in the 2020 Defi boom, according to the research, with over 33,000 blockchain registrations. In July 2020, the number of transactions on Uniswap hit about 400,000.

Despite the fact that China has banned crypto mining, it continues to operate in the shadows. According to the research, China’s stealth mining operations are continuing throughout industrial operations.

Many people have converted to at-home GPU crypto mining, making it difficult to identify home-based miners.

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