Yet it does look like the beginnig of the end for the cryptocurrency there.
Articles have begun circulating with incendiary headlines concerning Bitcoin and other forms of cryptocurrency, more specifically that the government of India has banned the use and trading of this monetary form within the country. Unfortunately, those headlines might be interesting and may have even led to a drop in trading value of several brands of currency, but they are not entirely accurate at this time.
What is in the works, though, is an effort to curb the cryptocurrency craze in India. Like other countries such as South Korea, India is investigating the need for an outright ban while seeking regulation to protect consumers who’ve been caught up in the “get rich quick” craze.
According to a budgetary announcement by India’s finance minister Arun Jaitley, “The government does not recognise cryptocurrencies as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payments system.”
Cup of sugar
This can certainly be seen as the beginning of the end for Bitcoin in India. After all, according to Quartz, one out of every 10 Bitcoin transactions happens in India. In his statement, Jaitley has basically said that Bitcoin holds no higher status as currency than trading your neighbor a cup of sugar for a handful of eggs.
While the government is still working towards any kind of tangible regulation, cryptocurrency is not banned, simply meaning that it is not illegal to use, mine, or trade in the currency at this time. That may very well be the direction they wish to move towards, but reports of a ban are very premature. What is in the works is a ban on using the currency for illegal transactions, such as “dark web” purchases and outright criminal activity.
It’s hard to argue with a government oversight committee whose goal is to protect consumers from the tidal wave that currently rolls across every shore. By some reports, more people are trading in and hording cryptocurrency than actually spending it, which is not good from an investment standpoint.