India’s Draconian Take On Crypto, Is It Aiming For A Blanket Ban?

Cryptocurrencies have held a prominent place in the financial world for over a decade now but it still remains a nebulous concept for many. It also remains highly volatile and governments across the world have taken different stances on cryptocurriences. India’s take on cryptocurrency has been particularly draconian.

Indian Government’s Stance against Cryptocurrency

Recently the Indian government has issued a ban on cryptocurrency in the country, citing the major risk it posed to investors. It also noted that cryptocurrencies could be used as a tool to finance illegal activities such as money laundering and terrorism. The government announced that financial institutions such as banks would no longer offer any services relating to cryptocurrencies. As a result, all trading, mining, and transactions involving cryptocurrencies in the country are now illegal.

Consequences of Such Actions

These actions by the Indian government have created a lot of confusion amongst investors, traders and businesses related to cryptocurrency. Several cryptocurrency startups and exchanges in the country have started to look for alternate investments and business opportunities. The government’s ban has also forced people to look for ways to buy and trade cryptocurrency illegally, which makes the situation even more dangerous.

Furthermore, the actions of the Indian government could also have a ripple effect across the world, as investors, traders and businesses in other countries may start to take similar precautions. This could eventually lead to a blanket ban of cryptocurrencies worldwide.

Conclusion

The stance of the Indian government towards cryptocurrency is clearly very hostile and is worrying for investors and businesses around the world. It remains to be seen if other nations follow suit and impose a blanket ban on cryptocurrency or if they will show more tolerance and work towards regulating it.