Crypto To Be Banned By India In Terms Of Payment Method

In case of making payments, cryptocurrencies are to be banned by India, but regulation and trading of crypto in form of assets would be allowed as mentioned by Economic Times.
• In lieu to the same, crypto regulation bill would be passed in parliament’s winter session as per government plans and details are being finalised for the same. The bill has changed course from earlier plans for banning crypto in the country.
• Authorities are going to ban ‘active solicitation’ from crypto firms involving exchanges and platforms in the bill.
• The crypto exchanges as WazirX and Bitbins are attempting to stop their ads as per Economic Times. To this, WazirX person had mentioned to CoinDesk about the exchange would stop advertising in August. Also the spokesperson added that ET’s headline is misguiding.
• The basic claim is on advertising as it is being thought off to misguide the youth, as mentioned by the CEO of the Think Tank Policy 4.0 (Tanvi Ratna) to CoinDesk.
• A Meeting was conducted with the crypto industry representatives on Monday by the government, which clearly mentioned the series of closed door discussions between Reserve Bank Of India(RBI) and the government being conducted in past days.
• Tanvi Ratna also added that current discussions on regulation of crypto as an asset are not possibly correct as the most tough job is to explain the asset class. Rather the RBI concerns are much appealing to solve as capital controls, financial stability and exchange rate risk.
• Ratna was of the opinion that regulating crypto as an asset won’t solve every issue which authorities are having concern for, but yet it could bring it out of the currency area and this is one of the biggest worry of RBI.
• Economic Times had discussed further about the price arbitrage as new concern on Wednesday, it also mentioned that authorities were concern with the manner with which regulator could keep tabs on the multiple exchanges, specifically when there is large price difference and a chance for price arbitrage.
• For making the regulations appropriate, the exchanges are willing to focus on regulatory base as per to the report. Where, Securities and Exchange Board Of India would be signed as regulator, but with no final action taken on such an issue.


Therefore, it is valid to put regulations on crypto so that the one insecurity left with trading with crypto is also removed and the few of individuals interested in trading with crypto can also trade without having any doubt. This would also aid in increasing the number of individuals to trade in the crypto world. 

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