Ban Cryptocurrency – Latest News From Jammu Kashmir | Tourism

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Doctor Daleep Pandita
The Indian government is now planning to ban transactions using cryptocurrency, which is a form of virtual currency, in our country. Based on an in-depth study by an appointed committee, the Reserve Bank of India (RBI) recently made strong recommendations to the Union Ministry of Finance to immediately ban cryptocurrency in India. Also for the second time “The Cryptocurrency and Regulation of Official Digital Currency Bill – 2021” was reported by the Parliament, which under the pressure of hidden investors, at least proposed to impose a tax on these transactions, thus legitimizing the introduction of this type of currency in our country. As the virtual currency has no legitimate status in India, despite the fact that many Indian investors have already joined this fray, it is opposed to the ongoing fully responsible digital payment mode which is increasing by the day taking on the preferred mode of transition of money in our financial system.
Born in 2009, the cryptocurrency traded through more than 5000 coins also with Bitcoin and Dogecoin in common use, is elementary without any intrinsic value having neither legal entity nor exchangeable with a certain amount of another commodity and does not have a physical form . With no oversight by a country’s financial regulator, the coin circulatory system is also privately individualistic without the involvement of third parties, as its name proves: crypto. With a huge strength of over $ 2 trillion, the cryptocurrency market has so far not experienced any kind of proxies that have appeared frequently in the stock markets, so this bull market has gained enough trust and confidence from investors without fear of losing money on this one. platform. . Currently, this virtual currency has evolved as an essential part of the international economy, becoming a safe and convenient means of financial transactions around the world, eventually becoming a reliable tool for diversifying your investment portfolio.
In India, the concept of cryptocurrency was basically conceived after demonetization which shook people’s financial confidence in flat currency and actually gained momentum during the COVID pandemic during which digital payment mode became a regular mode of financial transitions. . Despite the excessive pressure created by the unwanted lobbying of more than 80,000 less exposed cryptocurrency investors, who temporarily lure our political system under the false pretense of much-needed rapid economic development, these unauthorized illegal financial transactions continue unabated.
Although our financial system has always asked to critically analyze the pros and cons of this form of economy before legitimizing it and introducing it into our system. To date, cryptocurrency is not considered a legal tender like that of a flat currency issued by the Indian government, but it now requires financial authorization and legality in our country.
Financial instability, covert transactions, lack of control by regulators, unfair use of funds including embezzlement, increase in economic crime, promotion of financial fraud, increase in cybercrime, tax evasion, violation of foreign exchange principles, money laundering and, above all, complicity with terrorist activities due to cross-border transactions are some of the significant disadvantages that produce very risky and dangerous cryptocurrency transactions for our country. So, if cryptocurrency is not a risky preposition for investors, it is equally dangerous and highly volatile for our global financial system and is not recommended in the interest of national security for a country like India. Realizing such dramatic consequences, even countries like China, the Gulf countries, Turkey and some European countries have already banned the circulation of cryptocurrencies in their economy.
Although in 2018, RBI ordered our banking and non-bank financial institutions not to allow any type of transaction involving cryptocurrency investments, the much-needed decision that led to the closure of many cryptocurrency exchanges in India. Also based on an in-depth study conducted by a committee set up for this purpose by the Reserve Bank of India, he reiterated his previous commitment to immediately introduce a ban on the introduction of cryptocurrency into the Indian financial system. Instead, lessons should be drawn from the experiences of those countries that already ban cryptocurrency, which can be of immense help in legislation with the proper teeth to combat this threat that poses serious internal and external threats to the economy and our nation, seeing thus a strong message to the unauthorized lobby of covert investors promoting risky and dangerous cryptocurrency activities in India.
(The author is a senior PSU official of the Indian government)

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