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The Asian giant has declared its intention to restrict the activities of crypto users and its promoters in the country due to fears that cryptocurrency may render its local currency, the INR unpopular or replace it, which could lead to loss of control over monetary policy.
According to Sohail Merchant who is the CEO of local crypto exchange Pocketbits, a letter regarding issues to be solved along with a “crypto 101 kit” representing the crypto sphere in India has been dispatched to the finance minister. However, stating that with these facts released to the public, the overall negative public outlook of cryptocurrency development and its activities will change to positive.
Banning crypto may cost India about $12.9 Billion market share
Another crypto expert, Sidharth Sogani, the CEO of crypto and blockchain research firm Crebaco Global Inc, said during his news interview recently that by his firms analysis, assuming crypto is legalised in India the total revenue that may accrue to the country from associated business and white papers in India is estimated at $4.9 billion, while from expert blockchain coders is estimated at $2.1 billion and for content creators about $1.27 billion, also a total of $4.5 billion from miscellaneous jobs, including lawyers, event managers and laborers.
In his speech he further disclosed that India has a no better option except to regulate cryptocurrencies instead of banning them outrightly, therefore it is not likely a ban will prevent its use:
“Regulating cryptocurrencies is the better option without which a ban is not possible on a population of 1.3 billion people as this will demonstrate their lack of capacity to execute such a ban.”
India’s proposed Crypto ban policy bill
This bill seeks to prohibit persons or entities such that “No person shall mine, generate, hold, sell, deal in, issue, transfer, dispose of or use cryptocurrency in the territory of India.”
The Indian crypto community has declared this bill as flawed because the reports show the lack of understanding of cryptocurrency and its underlying technology. The government has demonstrated a total disregard for proper research on the subject matter and without inviting stakeholders has concluded that cryptocurrency seeks to replace fiats.
However, the crypto community is doing its best to sensitize elected representatives on the technology and usage of crypto assets rather not as a legal tender or currency but as a commodity and an asset which is classified as a store of value.
While stating that as Indian citizens, the right to trade and commerce, which was granted by the Constitution of India is their fundamental right, and as such, the government cannot successfully ban the use of cryptocurrency as it will only limit its use by legitimate operators while encouraging the black market to flourish. Experts have opined that the draft bill which does not even classify as a crypto report properly will not be presented in parliament and if it sails through it will not be passed into law.