India Ban on Crypto Currencies at Budget 2018, Is it for Real? My Views with Facts
The year 2017 has been a booming year for cryptocurrencies as well as bitcoin, we have seen bitcoin shoot up from 900 USD in Jan 2017 till 9000 USD in Jan 2018 after a crash from its all-time high of nearly 20,000 USD. There has been a major jump in total Cryptocurrency market cap from 17 Billion USD to over 400 Billion USD (currently after reaching over 800 Billion USD).
Past year has also been a very dicey situation for crypto investors for a lot of reasons as well as various country governments actions on cryptocurrencies.
Russia
When Russia cleared it stands for not accepting crypto as legal tender at first at the same time a new cryptocurrency came to light by the name "Russia Miner Coin or RMC" currently trading at over 8600 USD tentative from its all-time high over 24,000 USD. RMC is backed by a company with a major investment of Russia's Prime Minister Mr. Putin. The point of RMC is to promote Bitcoin mining in Russia and to compete with Chinese BTC miners.
China
China has been a bully in my personal opinion on the crypto-currency market. Banning cryptocurrencies at first then putting the ban on ICOs, Trading Exchanges, Crypto Mining and what not. But every time we have seen China reversing their actions. however, crypto mining ban is still unclear but on the other hand, we can predict that China is one of the major countries in crypto mining space, cannot afford to lose it's position, especially by putting bans as there are many countries want to take charge of it at any point of time.
South Korea
This has been a very recent news about South Korea banning exchanges and crypto trading completely. However, after a certain period of time. They have also reversed their action on banning crypto trading and made some guideline about it.
India
Being a growing country in the world. India is still unsure about cryptocurrency space and just yesterday in budget 2018 according to many news websites & articles, India has placed a ban on cryptocurrency trading which again is quite an impact on crypto market cap with last 24 hours. However, if you try to listen to the statement of Indian Finance Miniter Mr. Arun Jetly was not cleared about the statement of placing a ban instead he suggested that "in India Bitcoin or any other cryptocurrency is not a legal tender (which is actually the statement of many countries, that;s because they don't want cryptos to be used as mode of transaction like USD, JPY, INR etc.) and government is looking forward to making plans to eleminate cryptocurrencies involvements in finacing illigitimate activites or as part of payment system.
Above statement is quite controversial as there was no mention of banning cryptocurrencies trading entirely but to ensure it's usage not being spread in the country. Media houses play a very big role in users sentiments whereas many media channels, as well as news articles, have related this statement to placing a ban on crypto space entirely in India.
I am not sure a growing country like India can afford a complete ban on cryptocurrencies as this would invite people to trade in bitcoin or other cryptocurrencies with cash and without regulation or taxes.
However, I would love to know your opinion on this matter, what you guys think of this statement, do you guys believe that crypto is going to crash hard or India is going to ban crypto market completely in the country?
Please let me know your thoughts in the comment section below.
For Newbies: http://www.BunnyChum.com/StartWithCrypto
Great post here.
Personally I believe all these set backs are part of the growth process of Bitcoin. Most of these decisions will eventually be reversed, it's clear that some big players want to drive the price down thru FUD so they can buy in cheap from the weak hands.
Many thought it was the end of Bitcoin after the fork in July 2017, but within 6 months it got back to an ATH. This dump is necessary as we prepare for another ATH. it's time for investors to take their positions. Cheers
Upvoted and following you for more of this.
The changes made by this mechanism contribute to improving the quality, accuracy and transparency of financial accounts, with the development and implementation of a medium-term fiscal framework to improve the risk management process and identify policies to be implemented over the medium term through measurable targets, as well as the introduction of a unified treasury account for resource management And the transition from accounting on a monetary basis to accrual accounting, indicating that the Ministry of Finance held successive workshops for all government agencies during the current year, to introduce the new mechanism for the preparation of the budget.
Arun Jaitley (the Minister of Finance) stated: "Through multiple notifications, the two parties (the government and the RBI) have notified the public over and over again that bitcoins will not be considered legal or legal tender in India"
The Government of India has formed a committee to regulate cryptocurrency currencies.
So,
"Legal tender versus being illegal"
Being "illegal" and not being considered "legal" are two completely different things. Cows are not "legal tender" in India, but are used for trade and barter. The fact that a government does not consider it "legal tender" does not mean that it is "illegal" to use or possess. But they try. India and China tried to ban gold at 0.01% a few years ago, and even the United States banned gold at 0.01% in the 1930s, all it did was force people to accumulate. The best they can do is try to "scare" people and accumulate the underlying assets they have made in 0.01% gold and probably also in Bitcoin.
@thomasawa I do agree, their major plan is to postpone the changes which are coming soon enough with blockchain.
@thomasawa, you can't just copy and paste stuff from trading view without at the very least referencing the original author. You even have the percent change (0.01%) and you didn't bother to remove it from your comment. Shameful.
@elmagnoon
First I wanted to tell you that I do not run, I flight.
In tradingview and I do not like to say this, but for you to have it in mind I am an influencer.
We have written that article together after long talks because he is one of my best friends and maybe the best TV trader.
Why do I tell you what flight? Read your comment.
You use the same concepts of legal and illegality, you mention China and India, about the argumentation of gold and percents. You even talk about the 1929 crisis.
Now, before writing something, if you want to contribute, add and grow, first think that your words are more important than saying nothing.
I saw your blog and the only thing you do is resteem the whales.
Content, ethics, contribute.
And I finish with this sentence: When A criticizes B, he is really talking about A.
@elmagnoon respect or reestem
@bunnychum
I inform you so that you are aware
@thomasawa Then I owe you an apology. Goldbug is one of my favorite TV analysts and if he's your friend and you wrote the article together, then again, accept my apology.
@thomasawa It's nice to know that you have contributed to that article, I have read it and really admire the work behind it.
Period. Agreed :P
mhm
Agree with most of the post. I believe that this FUD is merely a necessary step towards mutual co-operation to achieve a blockchain-enabled future, spearheaded by cryptocurrencies that aim to stay regulatory compliant.
I've also covered some analysis in this area. Would be great if you could take a look:
https://steemit.com/cryptocurrency/@cryptovate/is-the-digital-gold-rush-over-usd400b-wiped-from-global-crypto-market-cap-in-january-bloodbath
yes you are right@drepo15 even many of us know that this month of January is also called as the black month for crypto market we have seen the same condition in the history of bitcoin that bitcoin will dump during the month of January which will let the whales to buy this dip from newbie.
couldn't agree more @drepo15
THEY CAN BAN IT IN INDIA THEY CAN BAN IT IN CHINA, BUT THEY CAN NOT BAN PEOPLE ACCEPTING COINS :)
#ADOPTCRYPTOGOD
https://steemit.com/cryptogods/@mfg/l316uu4d
#CRYPTOCARTOONS
#CRYPTOWORLD
https://steemit.com/bitcoin/@mfg/blockchain-technology-in-near-future-deep-analize-of-humanity-fate-and-will-must-read-bitcoin-cryptotities-cryptokitties
My personal view is that every country's government should move from the decision of banning it. Instead of banning they should concern on how to regulate it. And i think cryptocurrency will make globalization more easy. Cryptocurrencies can make trade easy and secure. Though regulating is a challenging thing for every government.
@sedulous very true, regulation on cryptos is the major challenge for governments.
Any new paradigm is going to have it's detractors and opponents. Just like the Dotcom era of the '90s, the weak hands will be shaken out leaving only the cream of the crop.
@sirstacksalot Kind of true but it doesn't apply to all the cryptos out there, If we do a good research, there are many great projects getting build for the future, in my opinion of course.
These governments don't know what they are doing. First they put ban then they give very diplomatic statements. Whales are just trying to play with the emotions of the the small investors.
@suf1an It is actually very hard to decide for governments, this is a revolution we are going through.
Blockchain technology is way too powerful, anything with the power of changing the world infrastructure can do both good and bad...
This is a major concern, I believe right now.
Change has always been scary. From the moment man discovered fire to the steam engine and now Cryptocurrencies. Every few decades, it seems, technology makes an enormous leap forward very quickly and society is often very slow in accepting it.
@silentscreamer you are absolutely right
@bunnychum, you are right. But the thing is they don't want to embrace this channge. They are not willing to accept and lead it. I have just one question, we got internet only like 25 years ago and look the way it has changed this world. Our work environment, our communication, our way of business and so much. If all that could be changed then why not change the 400 years old system of money?
@suf1an completely agree with you mate, when it comes to democracy, Blockchain is actually based upon true democracy, where instead of central control, it gives the power back to people. And there are people who do not support this or are afraid of the change.
In any way, Everyone who understands the fundamental of this technology will agree with the statement that it cannot be stopped. All that is going on right now is just to delay the revolution knocking on our doors.
Yes, you are right. Another thing is, the underlying blockchain technology is fab and cryptocurrency is just one use case of that. Once we have more applications of the blockchain, everyone will start accepting it.
~sorry for the late reply.
Totally agree, but they know very well what they do.
India's secretly buying up bitcoin like crazy right now lol
lolzz.. could be true, same as JP Morgan :p @cyberblock
@bunnychum Great post as usual. Just wanted to add that a lot of people confuse the term "not a legal tender" with the term "illegal". These are two completely different things. The desired outcome of all these bans for governments is simply imposing regulations so that they still retain control of the financial and banking industries and don't sacrifice local economies and national currencies. The US senate is holding a hearing on Feb 6, so let's wait and see how this changes things. Also, history speaks for itself. Both India and China tried to ban gold a few years ago. The US did in fact ban gold back in the 30's, but that only pushed people to buy more. Now think about which governments hold the most gold reserves and you'll figure out the game here.
@elmagnoon true indeed, it is very hard to explain people about the terms governments use. especially with media poking.
Thanks @bunnychum for raising this question. Everyone is suspecting the market is red because of the FUD created due to this news. As an Indian and an active Crypto trader I must say that India is not BANNING the currency. Our stupid media created this hype and twisted the words of our beloved Finance Minister Mr. Arun Jaitley. Yesterday during the announcement of the Budget 2018 he made the below statement -
His intentions are not to BAN the cryptocurrencies in India. He would rather implement the uses of the Blockchain Technology in the current ecosystem of the country. They are going to hit the people who are doing illegal stuff and transacting through cryptos. Even Prime Minister Narendra Modi has elected a separate committee to analyse the implications of Blockchain and how we can benefit from it. ✌
I have also written a piece on this yesterday, Please have a look about what I think and I have explained in detail about India's stance on Crypto Universe. I hope and believe that the market will recover soon!
India Is Bulldozing On Illicit Cryptocurrency Transactions : Finance Minister In Indian Budget 2018
@hungryhustle that's exactly the point of my post. Media is saying Bitcoin is banned but according to Mr.Jaitley's speech, he didn't say anything like that.
double standards!
India is planning on their own cryptocurrency Laxmi! Government want to avoid spending on making paper and coin currency
In this speech he indicates how much it cost to print and deliver to people. But digital currency can save all those money and that can be used to help poors.
Nice post
There is a clear logic behind this decision, we have to understand that rise of one legal tender can easily degrade the one which is already in use, when more and more people will start using cryptos as legal tender the value of already in use legal tender will decrease. For example INR i.e India's legal tender which is already facing many difficulties will see the downfall when currency like Bitcoin will rise.
Another point to note is that it's not banned, its just not a legal tender yet .
@piyushpathak that's actually a valid point, thank you for sharing this insight.
your welcome :)
Great Info on Crypto space !
In my opinion, ban on cryptocurrency is just a hoax. A gimmick to create a demand and space for localised, country-specific cryptocurrencies. Cryptocurrency is here to stay and is already a part of wealth circulation. It would be foolish for a government to close the door on wealth coming in. And in my opinion , no government is foolish enough to do that. What do you say ? :)
Yes, for sure. Besides all that everything is so much advanced but our financial system is still outdated in terms of technology.
Isn't this strange that we can make voice calls or video calls cross-border within seconds but when it comes to money transfers which are not more than some digits sitting in your bank account (technically) takes days on top of that huge transaction fees? @nehab
I totally agree with you on this. Your question opens another wormhole of Indian governance - Reservation Quota that hands over the technical and job sector to under-qualified candidates.
I am not against creating opportunities via reservation in the primary education sector. But I am not for reservation in the job or college education sector. Because both college and jobs require quality control ! ... Anyway, this is another debate. I agree with what you say. We suffer the result of lack of knowledge and vote-bank politics in the government sector :) . Finance is government controlled ! :)
Thanks @nehab for supporting my view and my post. I completely agree with you over reservations but these are the weights which a developing and versatile country like India will have to carry along.
And I agree with you :)
Dear one. While the Finance Minister of India said that they do not support the crypto currency as a legal tender. This means that cryptocurrency can not take the place of National Currency which is the sovereign right of a Government. However he also mentioned that even gold is not a currency but it is being bartered with other goods. This indicates that he realises that the Crypto currencies have their intrinsic value and thus purchasing some goods or service in exchange of crypto would also be equated with a barter system. Barter system is prevelent in society even from the time the primitive form of currency came into existence. Basically crypto currencies are being looked as a threat by nations to their sovereign power to issue and control national currencies.
However the Finance Minister also mentioned and accepted the importance of Blockchain technologies. I have heard somewhere that a Big Bank has already started using Ripple for its international payments. It is a transitional time and naturally would a rough ride for cryptos. Basically it is a disruptive technology which is a direct threat to the legal currencies of the nation. being in the virtual world it also can not be controlled by national boundaries.
Givernment of India has already appointed a high level committee comprising of SEBI , RBI and Government Representative to study and suggest the path to be followed for regulating/ banning/legalizing this thing.
However this is a movement which has taken a gigantic proportion and can not be ignored by anyone. Being in virtual world, as I said, It can not be controlled by anyone. Therefore the logical decision of the Governments all around would be to accept its existence and start regulating this thing so that illegal transactions are curbed. Australian Government has already issued guidelines for taxing earnings from Cryptos. https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/
This is the future. One must hold on to it. Only one has to wait.
Please refer my earlier post here https://steemit.com/india/@mss1908/tax-dilemma-of-cryptocurrency-trading-in-india
Cheerup fellas :)