The Indian government announced a bill to ban the use of cryptocurrencies within the country. But he also adds that those people who do not comply with this law will receive million-dollar fines and penalties of up to 10 years in prison.
Once again, the government of India is working on the creation of a bill that seeks to prohibit any type of activity related to cryptocurrencies, within the country. An action that means a hard blow for investors and citizens in general who operate with this type of digital assets.
Likewise, it is important to note that until a few months ago, the Supreme Court of India had lifted a ban that existed regarding the use and support of cryptocurrencies. An event that allowed citizens in general to begin using crypto assets to carry out international operations and transfers. What it meant as an alternative to escape the high commissions charged by intermediaries for sending remittances. Likewise, many other citizens were attracted to invest in cryptocurrencies and some others to dedicate themselves to mining is. to generate income. Now, with this new bill, authorities are once again seeking to impose a blockade that prevents the use of cryptography within the nation.
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A hard blow for cryptocurrency investors and users in India
India is a country that has a fairly high level of banking, compared to other developing countries. Even so, according to a report de Global Index of the World Bank, almost 50% of banked people in India keep their bank accounts inactive; so it is a practically superficial growth.
This is partly because people receive most of their salaries and other income in cash. But it is also because the country has little banking infrastructure to satisfy user demand; so in the end many choose not to use their banking products. So much so, that in India there are many stores that only accept cash.
So, the moment the Supreme Court lifted the ban on cryptocurrencies in March of this year, many citizens were attracted to implement these assets as an efficient, fast and secure means of exchange. While many others focused on making investments in order to diversify their assets and multiply their profits.
A significant setback
So once again the possible ban on cryptocurrencies in India leaves citizens exposed to the flaws presented by the traditional financial system of this country. And not only that, this new bill seeks to implement harsh and even inconceivable sanctions for those who ignore this law. Thus, the Government Committee behind this project highlighted that The sanctions imposed will be a minimum of 1 year in prison up to a maximum of 10 years., depending on the severity of the fault.
For its part, Fines associated with direct or indirect use of cryptocurrencies within India could exceed $3 million, indicated the Committee.
In that sense, the fine will be imposed according to the severity of the losses or damages caused by a user; or even the profits you obtain from the use of cryptocurrencies. Thus, based on this calculation, the user may be required to pay up to 3 times the amount of said damages or profits; or, if applicable, the payment of 25 million rupees, which is equivalent to more than 328 thousand dollars. Without a doubt, an incredible and surprisingly high amount for a simple cryptocurrency user.
Measures to protect India from corruption?
This country has been adopting measures that seek to stop acts of corruption and other crimes that occur within its territory. In this sense, last year, India established a prohibition on the use and circulation of high denomination money, since he was involved in criminal acts carried out by the country's major mafias.
Now, the new measures against cryptocurrencies seek to stop the use and trade with cryptocurrencies supposedly to mitigate cases of corruption. But at the same time it denies the opportunity for development and growth to those honest citizens who do comply with the law.
However, if this new bill is approved, there is no doubt that the country will go back abysmally in the work it has been doing for the development of technology. blockchain. While it is true that this technology can be implemented for the development of other projects, it is also true that cryptocurrencies and Tokens They provide true potential to blockchain. Therefore, by prohibiting them, the implementations of this technology in the country may be somewhat limited.
Furthermore, considering that Indian states are looking to adopt the use of blockchain, but the national government wants to impose measures banning cryptocurrencies; It is evident that there is no unification of policies or criteria within the territory. Which can cause many companies that consider installing equipment or developing technological products within the country to radically change their investment plans.
Cryptocurrency ban in India: The ideal environment for scammers and fraudsters
Although the measures that India seeks to implement may help mitigate some cases of corruption, on the other hand, it will create an ideal environment for unscrupulous people to want to scam users. If this law is implemented, Bitcoin and other cryptocurrencies will have a much higher value than they actually have.
The report even reveals that the ban on cryptocurrencies will negatively affect the honest population, while criminals will continue to escape justice. Likewise, he pointed out that corrupt politicians and fraudsters use accounts in Swiss banks to escape justice. A fact that until now no one has taken seriously; Therefore, no prohibition measures have been imposed against these accounts, despite the fact that it is a worldwide known issue.
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