Cryptomustar
Monday, May 23, 2022
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptomustar
No Result
View All Result
Home Regulation

India Plans Bitcoin Ban Even as Its Banking System Gradually Collapses

by admin
September 4, 2020
in Regulation
0
India Plans Bitcoin Ban Even as Its Banking System Gradually Collapses
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter



  • The Indian government is planning to introduce a law that would effectively ban Bitcoin.
  • Local media reports that the Ministry of Finance has moved the proposal for inter-ministerial consultation.
  • India’s decision to ban cryptocurrencies surface even as it faces one of its worst credit and banking crisis.

The Indian government may ban Bitcoin.

According to a report by Economic Times, the country’s finance ministry has sent the proposal for inter-ministerial consultation. The department then expects to forward the plan to its top cabinet, which operates directly under Prime Minister Narendra Modi. The move further allows the motion to be tabled as a bill in the parliament.

The news comes months after the Supreme Court of India reversed a de-facto bitcoin ban imposed by the country’s central bank. In its ruling, the apex judiciary had said:

“While we have recognised… the power of Reserve Bank of India to take preemptive action, we are testing in this part of the order the proportionality of such measure, for the determination of which RBI needs to show at least some semblance of any damage suffered by its regulated entities. But there is none.”

Nevertheless, a draft proposed by an interministerial committee in 2019 had noted Bitcoin’s role in money laundering and terrorist financing activities. A senior government official told ET that the Finance Ministry is now looking to have a “more effective” and irreversible policy to contain such risks.

The government needs to stop this madness of deciding whether they want to ban crypto or not. Either do it so we can fight it or come up with better regulations instead of throwing a news byte every few days creating panic in public.

Aadmi kare to kya kare?

— Naimish Sanghvi (@ThatNaimish) June 12, 2020

When Crisis Hits

India’s proposal to ban bitcoin surfaced at a time when the country is facing one of its biggest economic crisis.

As Asia’s third-largest economy undergoes its slowest growth in more than ten years, rating agency Moody has downgraded its status to Baa3. Other agencies, such as Fitch and S&P, too, have kept India one position above junk.

Analysts blame the global pandemic, but, in reality, the country’s root economic problems existed before the virus. One pivotal weakness is the credit crisis: a long history of bad loans that threatens its entire banking system.

The concerns escalated back in 2018 when IL&FS, a top financier, nearly collapsed and left a trail of bad debts. Meanwhile, Dewan Housing Finance, an informal bank, went bankrupt over similar issues. In March 2020, private banking firm Yes Bank had to be bailed out by the Modi government.

With cash-flow strapped, the crisis now looms over India’s ability to recover from the pandemic.

Bitcoin Demand

Escapist investors have started looking at alternatives to reduce their exposure from the Indian market. With expected slow growth leading to lower returns across the bond and equity markets, many have moved into Bitcoin as their hedge.

Data released by bitcoin marketplaces Paxful and LocalBitcoin showed a decent surge in the cryptocurrency trading in India. While LocalBitcoins hosted trades worth $14.5 million since March 2020, while coins traded via Paxful amounted to $15.36 million worth of deals.

Bitcoin trade volumes on Paxful and LocalBitcoins | Source: Useful Tulips

The surge in demand has also led significant firms to choose India as their next crypto destination. Binance, the world’s largest crypto exchange by volume, earlier this year, acquired a regional p2p crypto marketplace WazirX.

RELATED POSTS

G7 says crypto regulation must be swift and comprehensive

US Congress introduces record number of crypto related bills

The latter’s CEO, Nischal Shetty, called the Indian crypto market “a sleeping giant,” noting that the court’s bitcoin ban reversal would help create “hundreds of startups” in the country.

But with the latest ban report, Mr. Sherry expressed his disappointment with the Modi government, stating that they “do not understand” the technology.





Source link

Tags: BanBankingBitcoinCollapsesGraduallyIndiaPlansSystem
ShareTweetShare

Related Posts

G7 says crypto regulation must be swift and comprehensive

G7 says crypto regulation must be swift and comprehensive

by admin
May 21, 2022
0

Finance Ministers and Central Bank Governors from the G7 met last week to discuss global economic conditions, including cryptocurrency.The...

US Congress introduces record number of crypto related bills

US Congress introduces record number of crypto related bills

by admin
May 21, 2022
0

The U.S. Congress has introduced over 80 new bills for consideration related to the crypto industry, so far, of...

South African central bank mulls digital rand to streamline cross-border payments

South African central bank mulls digital rand to streamline cross-border payments

by admin
May 20, 2022
0

The South African Reserve Bank is mulling the issuance of a digital rand, Reuters reported on May 18, citing...

Coinbase launches new global crypto think-tank

Coinbase launches new global crypto think-tank

by admin
May 20, 2022
0

Leading cryptocurrency exchange, Coinbase has launched a new Coinbase Institute to advance policy debate around crypto and the future...

Stablecoins Receive Queen’s Blessings As UK Braces For Landmark Crypto Legislation

What now for stablecoins following the Terra UST disaster?

by admin
May 19, 2022
0

It’s been over a week since Terra UST de-pegged, triggering a massive market drawdown. UST’s market cap plummeted from...

POPULAR NEWS

4 Cryptocurrency that Blow Bitcoin Out of the Water

4 Cryptocurrency that Blow Bitcoin Out of the Water

September 25, 2020
Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

July 1, 2021
Apollo CBDC: The CBDC Platform that can Power Economies

Apollo CBDC: The CBDC Platform that can Power Economies

October 6, 2020
Stratus: The Most Feature Rich Social Media Network

Stratus: The Most Feature Rich Social Media Network

September 9, 2020
Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

February 19, 2021

EDITOR'S PICK

DeFi Protocol Parallel Finance Raises $22 Million in Series A Funding

DeFi Protocol Parallel Finance Raises $22 Million in Series A Funding

November 5, 2021
What Is a SPAC? Your Questions Answered

What Is a SPAC? Your Questions Answered

November 19, 2021
Market Wrap: Cryptocurrencies Stabilize as Some Traders Buy the Dip

Market Wrap: Cryptocurrencies Stabilize as Some Traders Buy the Dip

December 8, 2021
IRS Offers Tezos Staker Refund on Rewards Tax in Break From Current Policy

IRS Offers Tezos Staker Refund on Rewards Tax in Break From Current Policy

February 4, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Capitrade Ventures Sets To Assist Early Blockchain Projects
  • Fantom Maker Announces the Closing of Its $1.8m Private Rounds Led by Dao Maker and Halvings Capital
  • Cardano IDO LaunchPad “Coollaunch” Records a buzzing progress as it Sells Out 0ver 11% Of $COOL Tokens Within Days
  • BabyMusk Coin Launches, As It Aims To Be The Next Big MEME Coin
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptomustar.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptomustar.com

  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • yfBetayfBeta(YFBETA)$4.27-0.10%
  • IDLEIDLE(IDLE)$1.44-12.39%
  • WPP TokenWPP Token(WPP)$0.006826-3.49%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Werewolf CoinWerewolf Coin(WWC)$0.098082-2.58%
  • PolkaBridgePolkaBridge(PBR)$0.439784-6.92%
  • Dev ProtocolDev Protocol(DEV)$1.76-16.14%
  • EvidenZEvidenZ(BCDT)$0.122949-3.85%